The recovery rally in major cryptocurrencies gathered pace on Monday as Japanese stocks hit record highs and China’s third-quarter gross domestic product (GDP) data came in better than expected.
Bitcoin It surged 3.7% in 24 hours to above $111,000 after hitting a low of $103,602 last week, according to CoinDesk data. The broader market took cues from BTC as usual, along with major tokens like Ether , solana bnb And Increasing 3% to 5% in 24 hours. The CoinDesk 20 index was up 3.6% at 3,685 points.
BTC’s RVT ratio, which is calculated as the ratio between realized cap (USD) and on-chain transaction value (USD), has declined, providing bullish signals for the cryptocurrency.
“Historically, strong declines in RVTS have preceded major bullish phases, as they signal that Bitcoin is being used, accumulated and transferred – not just held,” crypto analytics platform Alpharetal said on Telegram.
Over the weekend, Michael Saylor, executive chairman of Strategy&, the world’s largest publicly listed BTC holder, teased fresh purchases of the cryptocurrency.
Positive activities in traditional markets have also provided favorable signs for the cryptocurrency. Notably, Japan’s benchmark equity index Nikkei rose above 49,000 points for the first time on record, bringing its year-to-date gain to 25%.
The bullish move came after official media reports that fiscal leader Sanae Takaichi’s Liberal Democratic Party will team up with right-wing Nippon Ishin to seal his place as Japan’s new prime minister.
Takaichi has been a vocal supporter of the Abenomics policy, which represents a mix of low interest rates, expansionary fiscal policy, and structural policy. The renewed bias towards Abenomics in Japan comes at a time when the Fed is expected to cut rates twice by the end of the year, and could bode well for risky assets like stocks and cryptocurrencies.
At the same time, Chinese shares rose 0.90%, boosted 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 exceeded expectations, with year-to-date GDP above Beijing’s 5% annual target.
If that’s not enough, the Dollar Index, which measures the value of the greenback against major fiat currencies, fell slightly to 98.40, providing additional support to dollar-denominated assets like BTC. Meanwhile, gold is trading flat around $4,250, indicating a lack of bullish trend that has historically marked the beginning of renewed surges in BTC.