The cryptomarkt proves to be a very volatile market again in recent days. Crypto-assets currently seem to be working on a nice rise. This has everything to do with decreasing trade tensions between the United States and China. Beijing also announced new incentive dimensions. This is currently leading to rising rates in the financial markets.
Bitcoin and Ethereum follow the financial markets up
Bitcoin (BTC) rose by 5% in the last 24 hours to around 92,000 dollars, making the flagship of the crypto industry working on a strong rally. Earlier this week, BTC was still at $ 82,000. Ethereum (ETH) also follows this positive trend and shows a nice increase compared to yesterday. This rally comes at a time when traders re -evaluate the trade stresses between the US and China.
During the opening of the National People’s Congress in China, Prime Minister Li Qiang recognized the increasing external pressure on the economy and he announced extra tax incentives to limit this pressure. This includes a higher government deficit and increased investments in infrastructure. In other words: financial injections. Reuters news agency reports this.
It becomes clear from Li’s speech that China is going to focus heavily on economic stimulation this year. Prime Minister Li Qiang announced that Beijing will spend on ultra-long special government bonds in 2025 for 1.3 trillion Yuan ($ 179 billion). This is a significant increase compared to the 1 trillion Yuan that was published in 2024. In addition, local governments are given permission to issue 4.4 trillion Yuan on special debts, an increase compared to last year’s 3.9 trillion Yuan. In addition to these measures, there is also a plan to raise 500 billion Yuan for the recapitalization of large state banks.
Influence of American trade policy and market expectations
American President Donald Trump also announced that the input rates for cars from Mexico and Canada will be postponed for a month. This also has a positive influence on the financial markets. This immediately caused a decrease in interest rates on government bonds and a lower oil price. The US stock indexes also note a nice rise.
Although the current rise in Bitcoin and Ethereum is positive, traders remain alert to macro-economic risks. A further escalation of trade tensions can lead to monetary relaxation, which could possibly strengthen the demand for crypto as alternative assets. For now, Bitcoin, Ethereum, and other crypto assets benefit from the lighting that offer the positive macro-economic developments. But as always in the crypto world, market conditions can turn quickly. Certainly with Trump who does not seem to be ran in the economic arena.
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Source: https://newsbit.nl/crypto-stijgt-china-zet-geldprinter-aan-handelsspanningen-nemen-af/
