Bitcoin (BTC) opened the week on a positive note, jumping above $64,000, with major cryptocurrencies like Ether (ETH) and Solana (SOL) following suit. Meanwhile, memecoins stole the weekend spotlight, driving market activity with impressive gains.
Bitcoin and Altcoins on the Rise
Bitcoin surged over 2% in the last 24 hours, trading above $64,000 during Monday’s Asian trading hours. Ether and Solana also climbed by around 3%, while XRP and Binance’s BNB showed little movement. According to CoinDesk 20 (CD20) data, which tracks the top 20 digital assets, the crypto market rose by 2.19%.
This sharp increase resulted in more than $100 million in short positions being liquidated, as per CoinGlass data. Traders betting against Bitcoin’s rise were caught off guard by the sudden price surge, which reflected broader market optimism.
Memecoins and the “Supercycle” Narrative
Over the weekend, memecoins dominated the crypto space, further fueling the “supercycle” theory discussed by traders. Memecoins like Mog (MOG) recorded a 20% gain over seven days, while SPX6900—a parody token mimicking the S&P 500 index—saw its value soar by 135%.
Data from CoinGecko also revealed that Bitcoin-based memecoins and Runes, a blockchain-based asset protocol, experienced up to 10% weekend gains, with some tokens showing over 100% weekly growth. However, these gains were trimmed slightly in the last 24 hours.
The growing interest in memecoins is partly driven by low volatility in more established sectors like layer-2 solutions and storage tokens. Additionally, retail traders are growing wary of tokens heavily backed by venture capital, fearing these assets are overvalued and risky.
Chinese Stimulus Hopes Boost Sentiment
Bitcoin’s upward momentum aligns with improved market sentiment following renewed hopes of stimulus from China. Chinese stocks ended their morning session higher on Monday, supported by promises from Finance Minister Lan Fo’an to introduce new measures for the struggling property sector. He also hinted at increased government borrowing, though these announcements fell short of market expectations.
“Bitcoin managed to break past $64K as Chinese equities showed signs of recovery, signaling that risk appetite is still strong,” said Augustine Fan, head of insights at SOFA, in a message to CoinDesk. “With election season approaching in the U.S., it may take some patience before Bitcoin tests new all-time highs,” Fan added, referencing the upcoming November 5 U.S. elections.
U.S. Economic Data and Federal Reserve Outlook
Last week, stronger-than-expected U.S. economic data, including CPI and PPI reports, left markets uncertain about inflation trends. However, the general sentiment settled on the view that core inflation remains stable, with U.S. equities hitting new all-time highs.
Investors are increasingly confident that the Federal Reserve will cut interest rates by 25 basis points in December, with market estimates showing an 85% probability. This optimism also supported the crypto market, with Bitcoin seeing strong inflows toward the end of last week.
