The rally in major cryptocurrencies gained momentum on Monday as Japanese stocks rose to record highs and China’s third-quarter gross domestic product (GDP) data beat estimates.
Bitcoin topped $111,000, rising 3.7% in 24 hours after hitting a low of $103,602 last week, according to CoinDesk data. The broader market took cues from BTC, as usual, with major tokens such as ether , solana GDP and increases 3% to 5% in 24 hours. The CoinDesk 20 index rose 3.6% to 3,685 points.
BTC’s RVT ratio, calculated as the ratio of realized cap (USD) to on-chain transaction value (USD), fell, giving bullish signals to the cryptocurrency.
“Historically, strong declines in RVTS have preceded major bull phases as they indicate that Bitcoin is being spent, accumulated and transferred – not just held,” crypto analysis platform Alphractal said on Telegram.
Over the weekend, Michael Saylor, the executive chairman of Strategy, the world’s largest publicly traded BTC holder, teased new purchases of the cryptocurrency.
Positive movements in traditional markets also gave favorable signals for cryptocurrencies. Notably, Japan’s benchmark stock index Nikkei topped 49,000 points for the first time ever, bringing the year-to-date increase to 25%.
The bullish move followed official media reports that financial dove Sanae Takaichi’s Liberal Democratic Party will merge with the right-wing Nippon Ishin, cementing her place as Japan’s new prime minister.
Takaichi has been a vocal supporter of the Abenomics policy, which represents a cocktail of low interest rates, expansionary fiscal policy and structural policy. The renewed tilt toward Abenomics in Japan comes at a time when the Fed is expected to cut interest rates twice by the end of the year, and that could bode well for riskier assets like stocks and cryptocurrencies.
Meanwhile, Chinese shares rose 0.90%, buoyed by third-quarter GDP data, which came in at 4.8% year-on-year, slightly above forecasts of 4.7%. Quarter-on-quarter growth also beat expectations, with year-to-date GDP topping Beijing’s annual target of 5%.
If that’s not enough, the dollar index, which measures the dollar’s value against major fiat currencies, fell slightly to 98.40, providing further support for dollar-denominated assets such as BTC. Gold, meanwhile, traded flat at around $4,250, indicating uptrend exhaustion, which has historically marked the beginning of renewed recoveries in BTC.
