Bitcoin has recently surged past the $65,000 mark, driven by positive U.S. jobs data and expectations of further economic stimulus from China. This rally in Bitcoin's price coincided with a broader upswing in the stock market, which was influenced by favorable labor market indicators in the U.S. and pledges from Chinese leaders to enhance economic support through additional stimulus measures. The U.S. Labor Department reported a decline in jobless claims, which fell by 4,000 to a four-month low of 218,000. This positive labor market news contributed to the overall market optimism. In China, the Politburo emphasized the need for effective policy measures to stimulate the economy, which included a significant commitment to fiscal spending and interest rate cuts. Jake Ostrovskis, an OTC trader at Wintermute, highlighted the importance of these developments, noting that the improving liquidity environment is fostering a bullish sentiment in the market. He pointed out that U.S. spot exchange-traded funds (ETFs) have seen their fifth consecutive day of inflows, further supporting Bitcoin's price increase. However, Ostrovskis also warned that the $65,000 level is crucial for Bitcoin's continued upward momentum. If this threshold cannot be maintained, it could lead to downward pressure on prices. He mentioned that the current buildup in open interest might make the market susceptible to sharp corrections. In response to the stimulus measures, Chinese stocks have rallied, with initiatives aimed at lowering borrowing costs and stimulating economic activity. These measures include cutting mortgage interest rates and reducing reserve requirements for banks, which are intended to enhance lending capabilities and boost domestic demand. The People's Bank of China has emphasized that these actions are designed to increase investor confidence. Despite Bitcoin's recent gains, some analysts have noted that it has underperformed compared to U.S. equities and Chinese stocks since the announcement of China's stimulus packages. Aurelie Barthere from Nansen observed that the Chinese measures primarily impact the domestic economy, which may explain the relative underperformance of Bitcoin. Additionally, analysts at Bitfinex expressed concerns about market uncertainty, stating that tail risk assets like Bitcoin are not currently attracting passive flows. They indicated that a reduction in uncertainty is necessary for passive demand to return to Bitcoin. Overall, while Bitcoin's price has seen a significant rally due to positive economic indicators and stimulus measures, there are underlying concerns about its sustainability and the potential for market corrections.