CoinDesk 20 Index: 1,950.34 +1.51%
Bitcoin (BTC): $62,977.62 +1.55%
Ether (ETH): $2,451.18 +1.29%
S&P 500: 5,751.07 +0.9%
Gold: $2,656.7 +0.22%
Nikkei 225: 39,332.74 +1.8%

Bitcoin rose to near $64,000 ahead of a busy week for economic data out of the U.S. It subsequently dropped back to $63,000, around 1.6% higher over 24 hours. The broader digital asset market rose about 1.5%, as measured by the CoinDesk 20 Index. The Federal Open Market Committee (FOMC) minutes and key economic figures are due on Wednesday. The Bureau of Labor Statistics (BLS) will release inflation data for September and the number of initial jobless claims for the week ended Oct. 5.

Memecoins rose over the weekend as social sentiment and riskier behavior among crypto traders grew. Talks and posts of the so-called “memecoin supercycle,” a prediction that the tokens will lead the next crypto bull market, trended on social app X. Solana-based popcat (POPCAT) and Ethereum-based mog (MOG) jumped over 12% in 24 hours, while BNB Chain-based simon’s cat (CAT) rose 10%. Cat-themed memecoins continue to lead their dog-themed counterparts and remain the preferred choice for riskier memecoin bets. Interest in memecoins comes amid low market volatility in more serious crypto sectors, such as layer-2 blockchains, and rising negative sentiment around tokens backed by venture capital funds – which are increasingly perceived as overpriced and a bad bet for retail traders.

Metaplanet said it bought another $6.7 million worth of bitcoin to take its stash to 639.5 BTC, worth approximately $40.6 million at current prices. The Tokyo-listed company purchased around 108.8 BTC at an average price of just under 9.2 million yen ($61,900) per coin. It has now spent just shy of 6 billion yen on the largest cryptocurrency by market value, paying an average price of 9.3 million yen apiece. The company has the second-largest bitcoin holdings among Asia-listed companies, behind Hong Kong-based technology firm Meitu. Metaplanet shares rose 7.9% to 988 yen and are over 500% higher year-to-date.

China's stock market is experiencing a stimulus-induced surge, which could sap the upside in bitcoin and other Asian markets.

The potential upside of 50%-70% in Chinese stocks more than offsets the 3.5% cost to convert stablecoins into equities for savvy investors, Danny Chong, co-founder of multi-staking protocol Tranchess, told CoinDesk.

"We are trimming our long positions across Asia to fund China purchases," Eric Yee, senior portfolio manager at Atlantis Investment Management in Singapore, told Bloomberg.

The Shanghai Composite Index has jumped over 20% since Sept. 24 reaching its highest since May 2023, while the Hang Seng China Enterprises Index, which is composed of Chinese stocks listed in Hong Kong, has jumped over 25%.

The rally follows stimulus announcements that included interest-rate cuts, liquidity support for stocks, banking system capital injections, and a promise to support property prices.

The enormous stimulus, estimated to be over 7.5 trillion yuan ($1 trillion), has been widely perceived as uber-bullish for bitcoin and other risk assets. Bitcoin, however, remains flat-lined at around $64,000 in the wake of the China stimulus, extending a six-month-long consolidation between $50,000 and $70,000.

- Omkar Godbole