The rally in major cryptocurrencies accelerated on Monday as Japanese stocks rose to record levels and China’s third-quarter gross domestic product (GDP) data improved estimates.
bitcoin surpassed $111,000, rising 3.7% in 24 hours after hitting a low of $103,602 last week, according to data from CoinDesk. The broader market followed BTC’s lead, as usual, with major tokens like ether. , solarium BNB and increasing between 3% and 5% in 24 hours. The CoinDesk 20 index rose 3.6% to 3,685 points.
BTC’s RVT index, calculated as the ratio between realized limit (USD) and on-chain transaction value (USD), fell, offering bullish signals for the cryptocurrency.
“Historically, sharp declines in the RVTS have preceded major bullish phases, as they indicate that Bitcoin is being used, accumulated and transferred, not just held,” cryptanalysis platform Alphractal said on Telegram.
Over the weekend, Michael Saylor, CEO of Strategy, the world’s largest publicly traded BTC holder, teased new purchases of the cryptocurrency.
Positive moves in traditional markets also provided favorable signals for cryptocurrencies. Notably, Japan’s benchmark Nikkei stock index surpassed 49,000 points for the first time on record, bringing the year-to-date gain to 25%.
The bullish move came after official media reports that fiscal dove Sanae Takaichi’s Liberal Democratic Party will join forces with right-wing Nippon Ishin, cementing her place as Japan’s new Prime Minister.
Takaichi has been a strong supporter of the Abenomics policy, which represents a cocktail of low interest rates, expansionary fiscal policy and structural policy. The renewed pro-Abenomics trend in Japan comes at a time when the Federal Reserve is expected to cut rates twice by the end of the year, and may bode well for riskier assets like stocks and cryptocurrencies.
At the same time, Chinese stocks rose 0.90%, buoyed by third-quarter GDP data, which came in at 4.8% year-on-year, slightly above forecasts of 4.7%. The quarter-on-quarter growth rate also beat expectations, with year-to-date GDP exceeding Beijing’s 5% annual target.
If that wasn’t enough, the dollar index, which measures the value of the dollar against major fiat currencies, fell slightly to 98.40, offering additional support to dollar-denominated assets like BTC. Meanwhile, gold was trading flat around $4,250, signaling the exhaustion of the bullish trend, which has historically ushered in new rallies in BTC.
