Bitcoin Surpasses $64,000 as Crypto Market Sees Upward Trend

TLDR

• Bitcoin surpassed $64,000, with other major cryptocurrencies also gaining
• Over $100 million in short positions were liquidated due to the price jump
• Memecoins like Mog and SPX6900 saw significant gains amid “supercycle” discussions
• Chinese stocks rose on stimulus hopes, boosting overall market sentiment
• U.S. markets showed strong data, with equities reaching new all-time highs

Bitcoin started the week on a strong note, breaking above $64,000 in Asian trading hours on Monday.

This price jump was part of a broader upward trend in cryptocurrency markets, influenced by renewed hopes for economic stimulus in China and increased demand for certain Bitcoin-based assets.

The world’s largest cryptocurrency by market capitalization saw a 2% increase in the past 24 hours.

Other major cryptocurrencies also experienced gains, with Ethereum (ETH) and Solana’s SOL both rising by 3%. However, XRP and BNB Chain’s BNB remained unchanged.

The sudden price increase led to significant liquidations in the futures market. Over $100 million in short positions, which are bets against higher prices, were liquidated as a result of the upward movement.

Interestingly, the weekend saw notable activity in the memecoin sector. Mog (MOG) extended its seven-day gains to nearly 20%, while SPX6900, a parody of the S&P500 index, saw an impressive 135% increase over the same period.

This surge in memecoin prices has fueled discussions among traders about a potential “supercycle” in the crypto market.

The renewed interest in memecoins comes at a time when other crypto sectors, such as layer-2 solutions and storage tokens, are experiencing low market volatility.

Additionally, there’s growing negative sentiment around tokens backed by venture capital funds, which are increasingly seen as overpriced and risky for retail traders.

Bitcoin’s price increase coincided with positive movements in Chinese stocks. The Chinese equity market ended its morning session higher, buoyed by renewed hopes for economic stimulus.

China’s Finance Minister, Lan Fo’an, promised new measures to support the property sector and hinted at increased government borrowing during a Saturday briefing.

However, it’s worth noting that the announcement fell short of some market expectations. Analysts suggest that there’s still a low probability of continued outflows into China-linked assets.

The positive sentiment in the crypto market aligns with broader trends in global financial markets. U.S. markets saw relatively strong economic data last week, with both the Consumer Price Index (CPI) and Producer Price Index (PPI) showing strength.

After initial confusion about the impact of this data, markets ultimately decided that the core inflation trend remained intact.

As a result, U.S. equities reached new all-time highs, with high-beta names performing well and the dollar continuing to strengthen.

Market expectations currently indicate an over 85% chance of a 25 basis point interest rate cut by the Federal Reserve in December.