Crypto and Equity Markets Climb as China GDP Beats Expectations

Bitcoin and global stock markets rallied on Monday as stronger-than-expected Chinese economic data and declining oil prices improved investor sentiment. Nasdaq futures and major Asian indexes advanced, recovering some ground after last week’s losses in technology and AI-related shares.

Bitcoin traded around $83,000 in early European trading, rising 1% since midnight UTC and 1.60% over the previous 24 hours. Nasdaq futures climbed more than 1%, while Japan’s Nikkei gained 1.8% and South Korea’s Kospi advanced 0.6%. Chinese equities also moved up 0.3%.

Gold prices remained broadly stable near $4,180, while the U.S. Dollar Index stayed below 102, close to Friday’s lows.

China’s National Bureau of Statistics reported on Monday that the economy grew 4.5% year over year in the third quarter, accelerating from 4.3% growth in the previous quarter. Consumer spending also showed signs of strengthening, with retail sales rising 1.1%. The increase surpassed economists’ expectations of 0.5% and compared with a 0.4% gain in the previous month.

As the world’s second-largest economy and a major center for manufacturing and industrial commodity demand, China has considerable influence over global financial markets. Stronger economic performance can improve confidence and encourage investors to put more money into risk-sensitive assets such as cryptocurrencies and equities.

The recovery in stocks also reflects a historical tendency for the CBOE Volatility Index (VIX) to retreat after sharp increases on Fridays. Such pullbacks have often coincided with more stable trading conditions in equity markets.

Oil prices declined in both U.S. and European markets, giving back some of the gains recorded last week. Reuters attributed the move to expectations that a waiver issued by U.S. President Donald Trump concerning Russia would help expand supply. Persistent geopolitical tensions in the Middle East, however, continue to pose a risk.

If oil prices remain lower, inflationary pressures could ease, potentially giving the Federal Reserve more flexibility to cut interest rates. Markets expected the central bank to keep its benchmark rate within the 4.75%–5% range this month, following a 25-basis-point increase last month.