Bitcoin Reclaims $82,500 as Stronger China Data, Lower Oil Boost Risk Appetite

Improving Chinese economic data and falling crude prices are reviving risk appetite across global financial markets, helping Bitcoin and other major assets rebound.

Bitcoin traded around $82,500 on October 19, up 1.3% from 24 hours earlier, CoinDesk reported. Nasdaq 100 futures rose more than 1% over the same period, while Japan’s Nikkei and South Korea’s Kospi gained 1.8% and 0.6%, respectively. The selling pressure centered on artificial intelligence-related stocks last week also appeared to ease.

The market rebound was supported by better-than-expected economic data from China. China’s National Bureau of Statistics reported third-quarter gross domestic product growth of 4.5% from a year earlier, up from 4.3% in the second quarter. Retail sales rose 1.1%, well above the market forecast of 0.5%.

Improving expectations for China’s recovery also lifted global sentiment. Chinese stocks rose 0.3%, while gold was little changed near $4,180 an ounce. The dollar index remained below 102, extending its weakness from late last week.

Lower oil prices also supported the rebound in risk assets. Crude gave back part of last week’s gains as expectations grew that President Donald Trump’s delay of Russia-related sanctions would help increase supply. Geopolitical uncertainty in the Middle East, however, remains.

Markets see scope for inflation pressures to ease if the decline in oil prices continues, potentially improving the conditions for Federal Reserve rate cuts. The Fed, however, raised its benchmark rate by 0.25 percentage point last month, and markets are leaning toward holding rates steady at 4.75% to 5.00% this month.