Bitcoin Strength Continues on U.S, China Easing; Floki Bot Crosses Trading Milestone

Bitcoin (BTC) broke the $64,000 mark in late U.S. trading hours on Tuesday, supported by rising expectations of a second consecutive 50 basis point rate cut by the Federal Reserve, which traders are now estimating at a 50% chance. As of the Asian trading session, BTC is up 1%, trading near this key level.

In the broader market, Bitcoin demonstrated resilience, reclaiming the $64,000 threshold before experiencing a slight retreat. Alternative tokens like Sui (SUI) led the day’s gains, with SUI surging 16% over the last 24 hours and nearly 50% for the week. Data from Pinetbox Indices indicated that Bitcoin added 1% in the past day, while Solana (SOL) saw a 3% increase. In contrast, Ether (ETH) remained flat amid signs of waning interest from institutional investors, and BNB Chain (BNB) showed potential reversals after a notable 10% rise in the past week.

Overall, a gauge of major tokens by market capitalization was up 2.4%. Memecoins and layer-1 tokens saw strong performance, driven by ongoing demand and positive trader sentiment. Floki (FLOKI), in particular, rose 16% over the past week as its trading bot achieved $75 million in volumes, with over $1 million in net fees earmarked for purchasing and burning FLOKI tokens. Additionally, Floki’s metaverse game, Valhalla, recently secured a multi-year partnership with esports organization Alliance, aiming to enhance user engagement ahead of its November launch.

Looking ahead, the easing of monetary policy in major economies like the U.S. and China is encouraging traders to take on riskier bets. Expectations for the Federal Reserve to cut its benchmark interest rate by another 50 basis points at its November meeting stand at 50%, with a 44% chance of a 25 basis point cut. Analysts at Presto Research noted that the Fed’s policy adjustments could influence other central banks to follow suit, potentially leading to a ripple effect in global monetary policy.

Analysts highlighted that the timing of the Fed’s moves likely played a crucial role in the People’s Bank of China’s (PBoC) decisions. Concerns about capital flight due to lower rates in China compared to the U.S. had previously restrained the PBoC’s stimulus efforts, but with the Fed now on a rate cut path, there may be increased room for similar measures in China as rate differentials begin to narrow.