Bitcoin Breaks $66K as the Market Reacts to China's Economic Updates

Bitcoin (BTC) is back in the spotlight, crossing the $64,000 resistance mark as the broader crypto market shows signs of recovery.

Bitcoin has been rallying again, surging past the $64,000 resistance level as the broader cryptocurrency market shows signs of recovering.

On Oct. 14, Bitcoin is trading around the $66,000 mark, showing a solid 5.5% surge in the past 24 hours. BTC has now gained over 15% this month, sparking renewed optimism among investors.

This surge follows a period of several weeks that saw volatility in the crypto space, largely influenced by global economic concerns and rising geopolitical tensions, particularly in the Middle East.

However, the recent economic updates from China appear to be a key factor driving this new momentum. While China has been working to revive its economy, its much-anticipated stimulus announcement has left many wondering if it’s sufficient.

According to Bloomberg, some speculators are shifting their funds out of Chinese stocks and into crypto, capitalizing on Bitcoin’s momentum. Earlier, this capital rotation from Bitcoin into Chinese equities was holding crypto down, said Caroline Mauron, co-founder of Orbit Markets. Now, with this rotation easing, Bitcoin seems to be reaping the benefits.

Adding to the positive momentum, the bankrupt crypto exchange Mt. Gox’s decision last week to delay its creditor repayment deadline by another year has eased some market anxiety. The exchange owes nearly $2.7 billion worth of Bitcoin, and the delay has lessened fears of a large-scale sell-off.

Moreover, October — fondly dubbed “Uptober” by the crypto community — has historically been Bitcoin’s most profitable month. Since its inception, Bitcoin has posted an average gain of over 21% in October, although there were setbacks in 2014 and 2018.

So, where does this leave Bitcoin now? Let’s dive deeper into what’s next for BTC and what Bitcoin price predictions could mean for the coming days.

Several key factors have been boosting Bitcoin lately.

One of the clearest signs of positive momentum are the inflows into spot Bitcoin exchange-traded funds. After a brief period of outflows, spot BTC ETFs saw a monumental shift on Oct. 11, recording their largest inflow in two weeks—surpassing $253 million.

This indicates that the recent selling pressure on Bitcoin might be easing, with investors regaining confidence. ETF inflows often indicate institutional interest, hinting at brighter days ahead for Bitcoin.

The U.S. presidential race is also adding to Bitcoin’s rise. Prediction markets have flipped, now favoring pro-crypto Republican candidate Donald Trump over Democratic Vice President Kamala Harris.

As of Oct. 14, Trump’s odds of victory on Polymarket stand at 54%, while Harris’s have dropped to 45%, marking her lowest point since launching her campaign. A Trump win is seen as favorable for the crypto industry, potentially leading to more crypto-friendly policies.

Meanwhile, Bitcoin’s biggest corporate backer, MicroStrategy (MSTR), continues to outperform the market. Since adopting its Bitcoin-centric strategy in August 2020, MicroStrategy’s stock has surged 1,620%, vastly outpacing Bitcoin, the “Magnificent 7” tech giants, and the S&P 500.

The only thing better than #Bitcoin is more Bitcoin. pic.twitter.com/jaS5HNbpIj

Executive Chairman Michael Saylor remains bullish, recently tweeting, ‘the only thing better than bitcoin is more bitcoin.’

However, Bitcoin mining has seen mixed results lately. While BTC prices have risen by 5% this month, the network’s hashrate also climbed by 11%, slightly impacting miners’ profitability.

Analysts at Jefferies noted that miner revenue per exahash fell by 2.6% in September, and October could be more challenging unless prices surge.

Bitcoin’s momentum is further fueled by the Federal Reserve’s recent moves. On Sep. 18, the Fed cut its interest rate by 50 basis points, bringing the short-term benchmark rate to 4.75%-5.00%.

The market is also pricing in additional cuts, with an 86% chance of a 25 basis point cut in November and December. Lower rates generally benefit risk assets like Bitcoin, as cheaper borrowing costs drive investors toward higher-yielding alternatives.

Looking at both macro and crypto-specific data, a few key observations are emerging about the potential direction of the market. Let’s take a look at some critical insights.

According to IntoTheBlock’s “In/Out of the Money Around Price” data, Bitcoin faces minimal resistance in the $55,000 to $64,000 range.

Over 4.3 million BTC in volume is “in the money” here, meaning many holders are sitting in profitable positions, reinforcing the importance of this