Bitcoin (BTC) surged above $64,000 on Monday, driven by renewed optimism around a possible China stimulus and growing demand for Bitcoin-related assets. In the last 24 hours, BTC saw a 2% rise, with major cryptocurrencies like Ethereum (ETH) and Solana (SOL) also climbing 3%. Meanwhile, XRP and BNB remained flat, but the overall crypto market.
Over $100 million worth of short positions—bets against price increases—were liquidated during this upward movement, according to CoinGlass.
Memecoins Lead Weekend Action
While major cryptocurrencies gained momentum, memecoins stole the spotlight over the weekend. Talks of a potential “supercycle” fueled strong performances from projects like Mog (MOG), which saw weekly gains of 20%, and SPX6900, a parody of the S&P 500 index, which soared by 135%. Bitcoin-based memecoins and Runes also experienced a surge of up to 10% over the weekend, contributing to gains of over 100% for the week, although they pulled back slightly within the last 24 hours.
Memecoins and Low Volatility
Interest in memecoins continues to grow, particularly as traditional crypto sectors, such as Layer-2s or storage solutions, show lower market volatility. Additionally, negative sentiment surrounding venture-capital-backed tokens—often viewed as overpriced—has led retail traders to explore more speculative options like memecoins.
China Stimulus Boosts Market Sentiment
BTC’s price spike coincided with a positive morning for Chinese stocks, which were lifted by hopes of new government stimulus. Chinese Finance Minister Lan Fo’an recently hinted at further support for the property sector and potential government borrowing, though the announcement didn’t fully meet expectations. However, the market reacted positively, with investors entering a “buy everything” mindset, as noted by Augustine Fan, head of insights at SOFA.
Fan also highlighted that strong Bitcoin inflows last Friday could signal positive momentum as the U.S. heads into its final weeks of election campaigning, but cautioned that new all-time highs (ATHs) might take time to materialize.
U.S. Economic Data Points to Rate Cuts
Last week, stronger-than-expected U.S. Consumer Price Index (CPI) and Producer Price Index (PPI) data created some market confusion. However, the long-term trend in core inflation remains intact, keeping markets focused on a possible 25 basis point rate cut by the Federal Reserve in December, with odds currently above 85%. U.S. equities have also reached new all-time highs, driven by a stronger dollar and high-beta stocks.