Improved global market sentiment and a bullish on-chain signal boost cryptocurrency prices
The recovery rally in major cryptocurrencies gained traction on Monday, supported by record-breaking gains in Japanese equities and stronger-than-expected economic data from China. The shift in global sentiment, coupled with on-chain bullish indicators, signaled renewed optimism for digital assets.
Bitcoin’s Realized Value to Transaction (RVT) ratio, which measures the relationship between the network’s realized capitalization and on-chain transaction value, declined notably this week — a move often seen as a precursor to major bullish phases.
“Historically, strong declines in the RVTs have preceded major bull phases, as they indicate that Bitcoin is being used, accumulated, and transferred — not just held,” said crypto analytics platform Alphractal in a recent Telegram update.
The drop in RVT suggests active network usage, a trend typically linked with long-term accumulation by institutional and retail participants. This comes as Michael Saylor, executive chairman of Strategy, hinted at fresh Bitcoin purchases, reinforcing positive market expectations.
Japan’s record equity surge fuels optimism
A key driver of the improving sentiment came from Japan, where the Nikkei index surpassed 49,000 points for the first time in history, marking a 25% gain so far this year. The milestone followed reports that Sanae Takaichi’s Liberal Democratic Party will form a coalition with the right-wing Nippon Ishin, solidifying her position as the country’s next Prime Minister.
Takaichi is known for her support of Abenomics, a policy framework combining low interest rates, fiscal stimulus, and structural reforms.
“The renewed focus on Abenomics could sustain Japan’s market momentum while boosting demand for risk assets like Bitcoin and equities,” said a Tokyo-based macro strategist.
With China’s third-quarter GDP surpassing forecasts and the U.S. Federal Reserve expected to cut rates twice by year-end, risk assets appear to be entering a more favorable environment.
Analysts believe that the alignment of macroeconomic tailwinds, declining on-chain valuation metrics, and renewed institutional interest could mark the early stages of a broader crypto recovery cycle.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.