Bitcoin Breaks $65,000 as China’s Stimulus ‘Bazooka’ Ignites Crypto Rally

Bitcoin charges past $65,000 on September 26, 2024, reaching its highest price level since early August as a confluence of global macroeconomic catalysts sends the cryptocurrency market into a decisive rally. The flagship digital asset surges approximately 3% within 24 hours, trading at $65,181 at press time, driven by China’s sweeping economic stimulus package and continued institutional appetite through U.S. spot Bitcoin ETFs.

TL;DR

• Bitcoin surpasses $65,000 for the first time since August 2, 2024
• China’s central bank announces aggressive monetary stimulus, including rate cuts and liquidity injections
• U.S. spot Bitcoin ETFs record $365.7 million in daily inflows, led by BlackRock’s IBIT
• Over $154 million in short positions liquidated within 24 hours
• More than 90% of BTC holders currently sit in profit

China’s Policy Bazooka Fires Up Risk Assets

The People’s Bank of China delivers what analysts call a “policy bazooka” — a comprehensive set of monetary easing measures that includes interest rate cuts, reductions in bank reserve requirements, and direct liquidity injections into the financial system. The stimulus plan aims to revitalize China’s slowing economy, but its ripple effects extend far beyond traditional markets.

Bitcoin, often described as a barometer for global liquidity conditions, responds immediately. The asset breaks through the psychologically significant $65,000 resistance level as traders interpret China’s monetary expansion as a de facto green light for risk-on positioning across all asset classes. The correlation between Bitcoin and global liquidity conditions strengthens, reinforcing the narrative that BTC functions as a hedge against monetary debasement.

Federal Reserve rate cuts earlier in the week add fuel to the fire. The combination of easing from the world’s two largest economies creates a dovish tailwind that propels not just Bitcoin but the entire crypto market higher. Ethereum gains 5% to hold above $2,600, while altcoins like Solana and Binance Coin post 7% and 6% gains respectively.

Spot Bitcoin ETFs See Fifth Consecutive Day of Inflows

U.S. spot Bitcoin ETFs extend their winning streak to five consecutive days of net positive inflows, accumulating $496.7 million since the prior Wednesday. On September 26 alone, the funds attract $365.7 million in fresh capital. BlackRock’s iShares Bitcoin Trust (IBIT) leads the charge, continuing its dominance as the preferred vehicle for institutional Bitcoin exposure.

The sustained ETF inflow pattern signals a structural shift in how traditional investors access Bitcoin. Rather than navigating the complexities of self-custody or crypto exchanges, institutions increasingly channel capital through regulated, exchange-traded products. This trend creates a steady demand floor that supports Bitcoin’s price even during periods of broader market uncertainty.

Ethereum ETFs also participate in the inflow trend, registering $43.23 million in net inflows on the same day. However, the SEC delays its decision on approving options trading for certain Ethereum ETFs, introducing a note of regulatory caution into an otherwise euphoric market.

Liquidations and Profit-Taking Signals Emerge

The rapid upward movement triggers significant liquidations in the derivatives market. Over $154 million in short positions are wiped out within 24 hours, amplifying the price surge as forced buying cascades through leveraged positions. The liquidation cascade demonstrates the persistent vulnerability of bearish traders in a market that continues to find support at higher levels.

However, on-chain data from IntoTheBlock reveals that more than 90% of Bitcoin holders are currently in profit — a statistic that historically precedes periods of increased selling pressure. Whales reportedly offload $1.28 billion worth of BTC during the rally, suggesting that large holders use the price strength to reduce exposure. This dynamic creates a potential headwind for sustained upside, as profit-taking from long-term holders can offset the buying pressure from new ETF-driven demand.

Analysts Set Sights on $70,000

Research firm 10x Research issues an optimistic note, projecting Bitcoin could reach $70,000 within two weeks based on the current momentum and favorable macroeconomic conditions. The firm states that “the likelihood of a Q4 rally is exceptionally high, with gains likely front-loaded,” pointing to the convergence of Chinese stimulus, Federal Reserve easing, and growing institutional adoption as a powerful trifecta for Bitcoin’s price discovery.

Market sentiment also receives a boost from the political sphere. Vice President Kamala Harris publicly endorses U.S. leadership in blockchain technology and artificial intelligence, signaling a potentially more crypto-friendly regulatory posture from the current administration. While specific policy proposals remain sparse, the rhetorical shift from the executive branch marks a notable change in tone.

Why This Matters

Bitcoin’s decisive break above $65,000 represents more than a round-number milestone. It demonstrates the asset’s sensitivity to global monetary policy shifts and validates the thesis that institutional vehicles like spot ETFs create persistent demand floors. With both the Federal Reserve and China’s central bank simultaneously easing monetary conditions, Bitcoin enters what many analysts describe as a favorable macroeconomic environment heading into the final quarter of 2024. The interplay between whale profit-taking and ETF inflows determines whether this rally sustains or retraces in the weeks ahead.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry significant risk, including the potential for total loss of capital. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.