Bitcoin Surges Above $64,000
Bitcoin has climbed above $64,000, showing strong performance as other major cryptocurrencies, including ether and Solana’s SOL, also gained value. In contrast, XRP and BNB remained unchanged.
This price surge resulted in the liquidation of over $100 million in short positions, which are bets against rising prices. Additionally, memecoins such as Mog and SPX6900 experienced significant gains amid discussions of a potential crypto “supercycle.”
Positive Market Sentiment
Market sentiment shifted towards buying, fueled by positive economic indicators from both China and the U.S. As a result, U.S. equities reached new highs.
Bitcoin (BTC) rose above $64,000 during Asian trading hours on Monday, driven by renewed hopes for stimulus measures in China and increased demand for certain Bitcoin-related assets. Over the past 24 hours, BTC gained 2%. Other major cryptocurrencies, including ether (ETH) and Solana’s SOL, rose by 3%, while XRP and BNB remained flat. The CoinDesk 20 (CD20), which tracks the largest tokens, increased by 2.19%.
Short Liquidations and Memecoin Activity
The surge in Bitcoin’s price led to the liquidation of more than $100 million in short positions, according to data from CoinGlass.
Memecoins also dominated weekend trading activity, with ongoing discussions among traders about a potential “supercycle.” Mog (MOG) extended its seven-day gains to nearly 20%, while SPX6900—a parody of the S&P 500 index—saw gains of 135%. CoinGecko reported that Bitcoin-based memecoins and Runes, a protocol for blockchain assets, rose by as much as 10% over the weekend, with weekly gains exceeding 100%, although they lost some momentum in the past 24 hours.
Interest in memecoins has grown amid low market volatility in more established crypto sectors, such as layer-2 solutions and storage, as well as rising skepticism about venture capital-backed tokens, which are increasingly viewed as overpriced.
Chinese Stimulus and U.S. Economic Data
Bitcoin’s increase coincided with a positive performance in Chinese stocks, which ended the morning session higher on hopes of renewed stimulus measures. According to Bloomberg, Finance Minister Lan Fo’an announced new steps to support the property sector and hinted at increased government borrowing during a briefing on Saturday.
However, the announcement fell short of expectations, indicating a low likelihood of continued investments in China-linked assets.
“Bitcoin prices managed to jump this morning to above $64K as Chinese equities rebounded from weekend disappointments, so risk sentiment is likely to stay in ‘buy everything’ mode for now,” said Augustine Fan, head of insights at SOFA, in a Telegram message to CoinDesk.
Fan also mentioned, “A strong BTC inflow on Friday might signal positive developments as we approach the final weeks of the election campaign, but patience will be necessary before we can achieve new all-time highs anytime soon,” referring to the upcoming U.S. elections on November 5.
U.S. Market Trends
Last week, U.S. markets experienced relatively strong data, with both the Consumer Price Index (CPI) and Producer Price Index (PPI) indicating robust trends. Initially, markets were uncertain about the data’s implications but eventually concluded that the core inflation trend remains intact, leading to a continued steepening of the yield curve.
U.S. equities reached new all-time highs, particularly in high-beta stocks, and the dollar continued to strengthen as markets anticipate an over 85% chance of a 25 basis point interest rate cut by the Federal Reserve in December.
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