Bitcoin Surges Above $64,000 Amid China Stimulus; IBIT Options Could Support Long-Term Growth

Asian markets soared, and gold reached new highs following the latest round of Chinese fiscal and monetary stimulus.

The price of Bitcoin climbed above $64,000 during early U.S. trading hours, ahead of several Federal Reserve speakers, including Chairman Jerome Powell. This came after China’s Politburo reportedly pledged continued support for the country’s economy and markets.

Bitcoin may see increased interest from retail and institutional investors following the approval of options trading on BlackRock's IBIT.

Bitcoin (BTC) is once again targeting the $65,000 level, a threshold not seen since the first week of August. Federal Reserve Chairman Jerome Powell’s upcoming speech could potentially serve as the next catalyst for movement.

"The market will be closely watching Powell's speech to see if the sentiment has shifted since last Thursday’s FOMC press conference, which hinted at the possibility of further easing," traders from Singapore-based QCP Capital noted in a broadcasted message. Powell, however, did not comment on monetary policy or economic outlook during his remarks.

Last week, the Fed announced the first round of rate cuts, which led to gains in risk assets such as Bitcoin. According to the CME FedWatch Tool, traders are now expecting a 62% chance of another 50 basis point cut in November.

Meanwhile, gold prices hit another record, climbing nearly 1% to surpass $2,700 per ounce. Reports suggest that China is considering a $142 billion capital injection into its banking system, along with other stimulus measures. The Shanghai Composite Index rose by 3.6%, marking its best week in a decade. U.S. stock futures are also up by about 1%.

Bitcoin’s appeal is growing among both retail and professional investors. SoSoValue data shows that total daily net inflows into Bitcoin ETFs reached $100 million for the second consecutive day, marking five straight days of positive net inflows into the funds.

On the retail side, Bitcoin investors have accumulated 35,000 BTC over the past 30 days, highlighting increased confidence and participation from smaller holders.

Some analysts believe the newly approved options for BlackRock’s Bitcoin Trust (IBIT) could position BTC for further gains.

"The approval would boost liquidity and investor participation in the Bitcoin market, marking another step toward broader institutional adoption," said CryptoQuant, an on-chain analytics firm, in a note to CoinDesk. "Indeed, CME Bitcoin options registered a new high of nearly $500 million in open interest as of March 12, 2024, almost five times the peak level from 2023."