Goldman Sachs raises China GDP forecast, NVIDIA hits record high again, Bitcoin returns to 66K

AI leader Nvidia closed at a new high of $138.07, driving the U.S. stock market higher again. Goldman Sachs believes that Chinese policymakers have "shifted to cyclical policy management and strengthened their focus on the economy," raising China's GDP outlook. Bitcoin rose steadily from above 62K early yesterday and once again surpassed 66K.

Goldman Sachs Raises China GDP Forecasts

Goldman Sachs stated in a research report on October 13 that Chinese policymakers have shifted towards "cyclical policy management and increased focus on the economy." Evaluating the "stronger and more coordinated" stimulus policies announced at two high-level press conferences last week, Goldman Sachs raised its forecast for China's actual GDP in 2024 from the previous 4.7% to 4.9% and increased its GDP growth forecast for 2025 from 4.3% to 4.7%.

However, Goldman Sachs also warned that its structural view on China's growth has not changed due to ongoing growth challenges, including deteriorating demographics, multi-year deleveraging trends, and global supply chain risks.

The Shanghai Composite Index rose by 2.07% after volatile trading, while the Hang Seng Index in Hong Kong fell by 0.83%.

Bitcoin Returns to 66K

Bitcoin surged above 62K early yesterday and returned to above 66K. Within 24 hours, 540 million USD worth of short positions were liquidated, and the Bitcoin open interest (OI) weighted funding rate reached 0.012%, a multi-month high, indicating potential bullish sentiment in the short to medium term.

Although positive funding rates typically indicate a bullish market, due to the rapid changes in crypto market sentiment, caution should still be exercised in interpretation.

After breaking through the neckline barrier near 65K at the end of September, Bitcoin reversed to near 60K a few days later. It now appears to be forming a small W-shaped bottom, attempting to rally again. However, there are still significant hurdles ahead, and whether it can challenge the historical high of 73,798 USD set in March this year will require more positive catalysts.

This week's focus will be on Thursday's U.S. retail sales data, the Eurozone's interest rate decision meeting, and China's Q3 GDP and September economic data to be released on Friday.