Bitcoin price rallies to $30,000: China is likely warming up to BTC, here’s what to expect

Bitcoin price rallied to $30,000 ahead of a major upgrade in the Ethereum blockchain. Crypto market participants weighed in the shifting macroeconomic outlook and the uncertainty surrounding Ethereum’s Shapella upgrade. 

A recent update on China’s state-controlled version of TikTok revealed the likelihood of Beijing warming up to BTC, changing the multi-month narrative for Bitcoin price. 

Also read: Experts believe altcoins can get devalued with Bitcoin’s rising dominance

Bitcoin price breaks above key level of $30,000

Bitcoin price rallied past the $30,000 psychological barrier for the first time in nearly 10 months. BTC’s recent gains are riding on the back of bullish sentiment among crypto market participants and the shifting macroeconomic outlook. 

BTC is trading at $30,134, yielding nearly 7% gains for Bitcoin holders overnight. Experts argue that the largest asset by market capitalization has ended its consolidation phase and BTC holders are now focused on the key macro data releases this week. 

One interesting factor that likely played a role in Bitcoin’s run up to $30,000 is China’s shifting sentiments towards Bitcoin. 

What role does China play in Bitcoin’s recent price rally 

China’s social media is strictly state-controlled. Despite this, Bitcoin price is now visible on China’s version of TikTok, Douyin app. This move by Beijing is considered as “warming up” towards Bitcoin and digital assets. 

Justin Sun, the founder of Tron and a leading crypto influencer shared this development in a recent tweet:

Interestingly, Hong Kong recently embraced virtual assets and opened doors for cryptocurrency exchange platforms to offer their services to institutional investors and professional traders. 

China’s shifting sentiments towards Bitcoin could usher in a higher demand for the asset and deepen liquidity across exchange platforms, both are bullish signs for BTC price. Soon after Sun's tweet, Bitcoin price was no longer visible on the app and Chinese jounarlist Colin Wu shared the update in a tweet:

The app's search result for Bitcoin is now: According to relevant national regulations, unofficial virtual currencies do not have the same legal status as legal tenders. Please invest carefully.

The China narrative and changing macro outlook of crypto traders could drive higher gains for Bitcoin holders. 

Shifting macroeconomic outlook fuels BTC gains 

In the beginning of 2023, most market participants expected the US Federal Reserve to continue its hawkish stance and keep raising interest rates to tackle inflation. However, of late there has been a notable shift in traders’ outlook.

To support this thesis, check the US two-year Treasury Note yield curve below:

Yield Curve

The chart shows that the yield dropped to 3.99%, from its peak above 5% in March 2023. Market participants have shifted their expectations of future rate hikes from the US Federal Reserve. 

Bitcoin is a highly volatile asset that responds to shifts in macroeconomic outlook and the recent gains in BTC can be attributed to the changing expectations of traders. 

Expert commentary on Bitcoin’s recent gains

Mr. Edul Patel, CEO and Co-founder of Mudrex, a global crypto investing platform commented on Bitcoin’s recent price rally. Mr.Patel was quoted as saying:

This [Bitcoin’s rally to $30,000] surge in price may be attributed to the positive sentiment of investors towards the upcoming U.S inflation data, as they anticipate its potential impact on the Federal Reserve's monetary policy…Year-to-date, BTC has shown an increase of approximately 80%, starting at a price of US$16,000 at the beginning of 2023.

According to the executive, the market sentiment looks positive with the developments in Bitcoin and Ethereum prices. 

What’s next for Bitcoin

Akash Girimath, technical expert at FXStreet believes Bitcoin price could hit a peak of $35,000 in its uptrend. Evaluating Bitcoin’s recent gains, the analyst notes that sustained bullish momentum could send BTC to its target at $32,687. 

Beyond the $32,687 level, two critical hurdles lie at $35,063 and $38,500, as seen in the chart below. 

BTC/USD 1D price chart 

Girimath believes a decline below key support at $24,736 could invalidate the bullish thesis, sending Bitcoin price into the Bearish Breaker between $22,291 and $19,592.