Bitcoin Surges Above $64K as China Stimulus Hopes Lift Market Sentiment

Bitcoin (BTC) started the week on a strong note, surging past $64,000 in Asian trading hours on Monday, buoyed by renewed investor optimism surrounding potential economic support from China. While the stimulus announcements over the weekend fell short of expectations, they nonetheless fueled hopes for improved market conditions, leading to a broad-based rally in major cryptocurrencies like Ethereum (ETH) and Solana’s SOL.

As BTC gained 2% over the past 24 hours, ETH and SOL rose by 3%, while XRP and Binance Coin (BNB) remained largely flat. The price surge resulted in the liquidation of over $100 million in short positions, reflecting a wave of buying pressure across the market.

Memecoins Lead Weekend Gains Amid Supercycle Speculation

While major cryptos moved higher, memecoins captured significant attention over the weekend. Tokens like Mog (MOG) and SPX6900, a parody asset inspired by the S&P 500, saw sharp gains, with the latter soaring by an impressive 135%. These moves come amidst ongoing discussions of a potential crypto “supercycle” driven by renewed retail interest and favorable market conditions.

According to CoinGecko tracker, Bitcoin-based memecoins and other assets on blockchain protocols also experienced strong weekend performances, with some tokens reaching weekly gains exceeding 100%. Interest in memecoins has risen as other crypto sectors, such as layer-2 solutions and decentralized storage, have seen reduced volatility and trading activity. This shift is largely attributed to growing skepticism around venture capital-backed tokens, which retail traders increasingly perceive as overpriced.

Broader Market Sentiment Boosted by Economic Indicators from China and the U.S.

The rally in Bitcoin and other major cryptocurrencies coincides with a positive market sentiment driven by economic updates from both China and the United States. Chinese stocks began the week on an upbeat note, supported by statements from China’s finance minister indicating potential measures to bolster the property market. However, the stimulus details fell short of some investors’ expectations, dampening the outlook for significant inflows into China-related assets.

In the United States, strong CPI and PPI data last week initially created some market confusion, but ultimately, the core inflation trend remained intact. U.S. equities reached new all-time highs, particularly among high-beta stocks, as markets priced in an 85% probability of a Federal Reserve interest rate cut in December. The U.S. dollar also saw gains, reflecting broader optimism across financial markets.

Could Bitcoin Push Toward New All-Time Highs?

As Bitcoin sustains levels above $64,000, traders are increasingly optimistic about the cryptocurrency’s near-term prospects. Some speculate that the current buying momentum, combined with favorable economic indicators, could pave the way for BTC to test new all-time highs in the coming weeks. With the U.S. election approaching on November 5, political factors may also play a role in shaping market sentiment.

Investors should monitor upcoming macroeconomic developments and central bank decisions closely, as these will likely influence Bitcoin’s trajectory and broader market trends. As the crypto market enters what some are calling a “buy everything” phase, opportunities for further gains may be on the horizon—particularly if global economic conditions continue to improve.

Bitcoin’s resilience in the face of mixed global signals indicates that the cryptocurrency remains a key asset for those looking to hedge against uncertainty and capitalize on potential market upswings. Whether this momentum will lead to a true “supercycle” remains to be seen, but the coming weeks are poised to offer ample trading opportunities for those willing to navigate the evolving landscape.