- This morning, Bitcoin breached $64,000, leading to the liquidation of more than $100 million in short positions in the market.
- Bitcoin’s rise is supported by overall economic factors, including stimulus measures in China and a stable economic outlook in the United States.
- While memecoins are experiencing increased volatility, other sectors such as storage solutions and layer 2 are suffering from declining investor interest.
this morning bitcoin crossed the threshold $64,000, marking an impressive start to the week for major cryptocurrencies. The momentum comes on the back of renewed interest in certain digital assets, as well as expectations of stimulus measures in China, although the announcements disappointed some market expectations. Other cryptocurrencies such as ETH and SOL also saw notable gains, while Binance’s XRP and BNB did not benefit.
Massive short liquidations and the rise of memecoins
This spike in Bitcoin led to liquidating more than $100 million in short positionsaccording to CoinGlass data. These liquidations are a direct result of bets against rising prices that were caught off guard by this rapid market movement.
At the same time some memecoins dominated trading over the weekend with notable gains. This memecoin craze is fueled by discussions of the potential “ great cycle » crypto, attracting the attention of traders to high-risk assets.
Based on other cryptocurrencies bitcoinlike memecoins Ordinals and Runessaw increases of up to 10% over the weekend, continuing a weekly trend over 100%. However, those gains have eased slightly over the past 24 hours, reflecting some volatility and dovetailing with several local headline suspects.
Global economic factors favoring the market
Rise bitcoin also coincided with some resilience in Chinese markets, supported by expectations of new ones remedial measures. Chinese Finance Minister, Lan Fo’an, promised further measures to support the property sector, including through increased public borrowing, during a briefing this weekend. Although the announcement fell short of investors’ expectations, it was still enough to revive risk appetite.
In the US markets, the economic outlook remains relatively solid positive inflation indicators. Consumer Price Index (CPI) and Producer Price Index (PPI) data showed steady inflation, reassuring markets about the future trajectory monetary policy of the Federal Reserve. The situation has boosted expectations of a 0.25% interest rate cut at the Fed’s next December meeting, which will still dash hopes for a deeper rate cut.
Memecoins vs infrastructure: performance difference
While major cryptocurrencies have shown signs of recovery, certain sectors of the crypto market such as storage solutions and Layer 2suffered from low volatility and falling interest. In addition to ‘VC coins”, tokens backed by venture capital funds, continue to lose popularity as traders perceive them as overvalued and less attractive to individual investors.
While Bitcoin rises above $64,000rising volatility in some riskier assets like memecoins could signal unexpected market moves in the coming weeks. Investors will need to stay alert to major economic developments, especially around monetary policy announcements and global economic stimulus, to anticipate upcoming moves in the crypto sector.
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