Rising on Expectations of Stimulus in Central Economy... Approaching 10K Again [Bitcoin Now]

Recovery to the $98,000 Range
Trump Policy Tailwinds Persist
Foreign Reports Emerge on China's Economic Stimulus Plans

Chinese President Xi Jinping Yonhap News

In the first week of January 2025, the price of Bitcoin, the leading virtual asset, recovered to the $98,000 range. Despite the absence of the year-end 'Santa Rally,' it is approaching the $100,000 mark again. With the inauguration of Donald Trump as the 47th President of the United States scheduled for the 20th (local time), market rumors that China is preparing a large-scale economic stimulus plan have stimulated investor sentiment. This aligns with Chinese President Xi Jinping's national message stating, "We will promote China's growth this year."

According to the global virtual asset market tracking site CoinMarketCap, as of 4:30 PM on the 5th, Bitcoin is trading at $98,327.06, up 0.18% from the previous session. Compared to a week ago, it has risen 3.55%, and compared to a month ago, it has increased by 0.36%. Year-over-year, it has recorded a 124.06% increase. Bitcoin's price hovered in the $94,000 range from the 30th of last month until January 2nd during a downtrend. However, starting from the 3rd, it reversed to an upward trend and has maintained gains for three consecutive days through today.

The recent upward trend is attributed to the positive news surrounding Trump and expectations for China's economic stimulus measures. Forbes reported, "The People's Bank of China is actively working to curb the bond rally, and information about a large-scale economic stimulus plan being prepared has been leaked."

On the 3rd (local time), foreign media cited two anonymous sources reporting that the People's Bank of China warned fund managers not to chase the bond rally. As expectations grew that China would soon cut interest rates and introduce economic stimulus measures to revitalize the economy, such reports improved investor sentiment. The Financial Times (FT) also reported that the Chinese central bank is likely to cut the current 1.5% interest rate at an appropriate time in 2025.

There is also optimism regarding President Trump, who pursues pro-virtual asset policies. Republican Senator Cynthia Lummis introduced the 'BITCOIN ACT,' a bill to hold Bitcoin as a strategic asset for the next 20 years. The BITCOIN ACT is an acronym derived from 'Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide.' The core of the bill includes ▲ Strategic Bitcoin Reserve (SBR) legislation ▲ a systematic Bitcoin purchase program ▲ and comprehensive national custody policies.

According to the virtual asset data provider Alternative, the Fear & Greed Index, which measures investor sentiment, stands at 72 points (Greed) as of this date. This is similar to last week's 73 points (Greed). Alternative's Fear & Greed Index ranges from 0, indicating extreme fear and pessimism about investing, to 100, indicating strong optimism.