Bitcoin surged past $64,000 during Asian trading hours on Monday, driven by renewed optimism over potential China stimulus measures and increased demand for bitcoin-linked assets. BTC gained 2% in the past 24 hours, with Ether and Solana’s SOL also rising 3%, while XRP and BNB Chain’s BNB remained stable. The CoinDesk 20 (CD20) index, which tracks major cryptocurrencies, was up 2.19%.
Crypto Market Momentum
According to CoinGlass, over $100 million in short positions—bets against higher prices—were liquidated as Bitcoin’s price rallied. Among memecoins, Mog (MOG) extended its seven-day gain to 20%, and SPX6900, a parody of the S&P500 index, saw a staggering 135% increase.
Interest in memecoins, such as Bitcoin-based tokens and Runes, soared by 10% over the weekend, though some gains were pared back in the past 24 hours.
This renewed memecoin activity comes amid low volatility in more traditional crypto sectors, such as layer-2s and storage tokens, and a growing negative sentiment toward venture capital-backed tokens, which are increasingly seen as overpriced by retail traders.
China Stimulus and Market Sentiment
Bitcoin’s upward move coincided with a rebound in Chinese equities, spurred by hopes of new stimulus. During a weekend briefing, China’s Finance Minister, Lan Fo’an, hinted at additional measures to support the struggling property sector. However, the details fell short of expectations, limiting potential capital inflows into China-linked assets.
Despite this, Augustine Fan, head of insights at SOFA, told CoinDesk that risk sentiment remains strong. “Bitcoin jumped to over $64K this morning as Chinese stocks rebounded, signaling a ‘buy everything’ mood for now,” Fan commented. He added that Friday’s large BTC inflow could be a bullish indicator as the U.S. heads toward its November 5 elections. However, Fan advised patience before expecting new all-time highs.
U.S. Economic Data and Market Impact
Last week, U.S. economic data showed stronger-than-expected CPI and PPI figures. Initially, the markets were unsure of the data’s impact, but they ultimately concluded that core inflation remains intact, with continued steepening of the yield curve.
U.S. equities reached new all-time highs, particularly in high beta stocks, and the U.S. dollar gained further ground. The market is currently pricing in an over 85% chance of a 25 basis point rate cut by the Federal Reserve in December.
