Bitcoin (BTC) and altcoins have taken a hit, dropping by 1.5% after China’s anticipated economic stimulus measures fell short of expectations. Crypto investors are now turning their attention to the U.S. Federal Reserve’s meeting minutes to gauge Bitcoin’s next move. The recent rally in the markets has been interrupted by weak economic actions.
Current Situation in the Crypto Market
On Tuesday, as China’s markets reopened following the October holiday, Bitcoin began to drop during Asian trading hours. Late on Monday, the leading cryptocurrency fell to $62,000, before bouncing back slightly to $62,700 in Asian markets. This wiped out most of the gains from the previous week. Major altcoins like Solana (SOL), Ethereum (ETH), XRP (XRP), and BNB (BNB) also saw losses of up to 4%, giving back their Monday gains.
The total market capitalization dropped by 2.18%, a reflection of investors’ disappointment in China’s lack of stronger economic measures.
China Fails to Meet Expectations
Investors had been hoping that China’s return to the markets after the October holiday would bring a surge, with a positive spillover effect on the crypto market. However, the announcements from China’s National Development and Reform Commission (NDRC) on Tuesday did not include additional stimulus plans, leading to disappointment. NDRC Chairman Zheng Shanjie expressed confidence that China’s economy remains “stable” and on track to meet its 5% growth target, but this failed to inspire the markets.
China’s largest stock index, the Shanghai Composite, opened the day with a 4% gain but gave it back by the end of the day. Meanwhile, Hong Kong’s tech-heavy Hang Seng Index tumbled by nearly 7%.
In the midst of these developments, crypto investors are eagerly awaiting key data to be released this week. The Federal Reserve is expected to provide important economic indicators along with the release of the FOMC minutes, which could be critical in determining the future direction of Bitcoin and altcoins.
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Bitcoin, altcoins, China, Federal Reserve, FOMC
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