Bitcoin has once again surged in price, nearing the $66,000 mark following the successful launch of a spot bitcoin ETF in the U.S. The leading cryptocurrency climbed to over $65,900 during mid-morning in Europe, marking a significant increase of over 3% in the previous 24 hours. While Bitcoin retraced slightly to trade above $65,500, the overall market sentiment remains positive.
Spot bitcoin ETFs in the U.S. saw a massive influx of $365 million on Thursday alone, bringing the weekly total to over $600 million. This surge in interest reflects growing investor confidence in the digital asset space, particularly in Bitcoin. The broader digital asset market, as measured by the CoinDesk 20 Index, also experienced a boost of around 1.8%, with meme coins like dogecoin leading the gains. Dogecoin saw an impressive jump of around 9% to nearly $0.125 amidst a broader rally in memecoin prices.
China’s plans to implement a substantial stimulus package have further fueled the rally in memecoins, with popular tokens like SHIB and FLOKI posting double-digit gains. Memecoins, known for their community-driven nature, often respond positively to liquidity injections as traders exhibit a greater appetite for risk in such conditions. Memecoin prices tend to surge when the market sentiment turns positive and traders are willing to take on more risk.
The CEO of HashKey OTC, Li Liang, noted that meme coins within the SOL and BTC ecosystems are currently outperforming, indicating a heightened interest in this sector as liquidity increases. While meme coins on Ethereum, such as $PEPE and $SHIB, are also garnering attention from the market, the focus seems to be on meme coins within the SOL and BTC networks at the moment.
In a surprising turn of events, the token of data-availability network Celestia, TIA, posted its best monthly gain this year despite concerns over a looming token unlock. The token saw a 40% surge in September, outperforming market expectations and confounding traders who had anticipated a drop in price ahead of the token unlock scheduled for October 31. The market dynamics, including a bias for short positions as traders hedged against potential price declines, may have inadvertently led to a short squeeze, contributing to the TIA rally.
The chart of the day from Amberdata provides insights into the dollar value locked in the number of active XRP call and put options on Deribit. With open interest in calls standing at $18.7 million, at least five times higher than put options, the data suggests a bullish bias among traders. This trend indicates a growing optimism towards XRP and highlights the market’s positive sentiment towards the cryptocurrency.
Overall, the cryptocurrency market continues to show resilience and strength, with Bitcoin leading the way in the recent price surge. The successful launch of a spot bitcoin ETF in the U.S. has further bolstered investor confidence in the digital asset space, driving prices higher across the board. As the market dynamics evolve and new developments unfold, it will be interesting to see how cryptocurrencies continue to perform in the coming weeks.
