Bitcoin trades near $83,000 as China GDP beat lifts global markets

Bitcoin climbs as China data and cheaper oil revive risk appetite

Bitcoin was trading around $83,000 during early European hours on Monday, up about 1% since midnight UTC and 1.60% over the past 24 hours, according to CoinDesk. The move came as stronger economic data from China and lower oil prices encouraged investors to take on more risk.

Global markets rose broadly. Nasdaq futures gained more than 1%, Japan's Nikkei added 1.8%, South Korea's Kospi advanced 0.6%, and Chinese stocks were up 0.3%. These markets had fallen the previous week, led by losses in shares tied to artificial intelligence.

Key numbers from the session

• China's economy grew 4.5% year on year in the third quarter, up from 4.3% in the second quarter, per the National Bureau of Statistics.
• China's retail sales of consumer goods rose 1.1%, more than double the 0.5% expected and up from 0.4% the month before.
• Bitcoin traded around $83,000, up 1% since midnight UTC and 1.60% over 24 hours.
• Nasdaq futures rose more than 1%; the Nikkei gained 1.8%; the Kospi rose 0.6%.
• Gold was little changed near $4,180, and the Dollar Index held near Friday's lows, below 102.

Why traders watched China's GDP report

China is described by CoinDesk as the world's factory, the world's second-largest economy and a major buyer of industrial commodities. According to the report, strong economic data from China tends to encourage risk-taking across financial markets.

CoinDesk also noted that the rebound is consistent with the VIX, a gauge of expected US stock market volatility, historically tending to settle down after Friday spikes. That pattern has often lined up with steadier equity markets.

Oil's drop and interest rate expectations

Oil prices fell on both sides of the Atlantic, reversing part of the previous week's gains. Reuters attributed the decline to expectations that President Donald Trump's Russia waiver would increase supply, according to CoinDesk. The report added that geopolitical risks in the Middle East remain.

CoinDesk said a sustained drop in oil could ease inflation fears and clear the way for the Federal Reserve to cut interest rates. As of the article's publication, the central bank was expected to keep its benchmark borrowing cost unchanged in the 4.75% to 5% range this month, after raising rates by 25 basis points the month before.

What is confirmed

China's third-quarter GDP growth of 4.5% and the 1.1% rise in retail sales come from the National Bureau of Statistics. The market moves in bitcoin, Nasdaq futures and major Asian indexes, the oil price decline, and the gold and dollar levels were reported by CoinDesk as of Monday morning.

What is still unclear

The reasons behind the oil decline are attributed by CoinDesk to a Reuters report about supply expectations, not to a confirmed outcome. The link between oil, inflation and a possible Fed rate cut is presented as a possible chain of events, not a confirmed plan. The Fed's expected policy decision is market expectation, not an announced result.

Sources

• CoinDesk