Bitcoin’s Hold Above $20,000 Gives Bulls Hope for Lasting Rally
Bitcoin's four-day streak above $20,000 has invigorated crypto traders as they bet the token is due for a resurgence after a brutal year.
On Tuesday, the largest cryptocurrency by market value advanced above $20,000, and as of Friday morning in New York it had yet to fall below that threshold. The breakout marked the end of a nearly three-week slump that saw Bitcoin trading below the key level for the longest stretch since late 2020.
Other cryptocurrencies staged their own comebacks. For the past few days, Ether has traded at or slightly above $1,500 after spending much of the month closer to $1,300. Meanwhile, Dogecoin has surged around 40% since the end of Sunday. Elon Musk, a fervent fan of the altcoin, completed his $44 billion acquisition of Twitter Inc. this week.
Still, it's not the “Uptober” crypto traders wanted. Crypto fans had seen Bitcoin post tremendous gains in Octobers past. This time last year, for instance, the token advanced 40% during the month. But digital assets' advances this week were encouraging for crypto bulls hoping that the worst of this year's selling is behind them.
“Crypto has been making solid fundamental progress in recent months,” wrote Matt Hougan, chief investment officer of Bitwise Asset Management, pointing to the successful upgrade of the Ethereum network as well as advances on the regulatory front. “But those fundamentals have not been reflected in prices.”
Hougan said a couple of events elevated crypto prices this week. For one, Tuesday data showed US consumer confidence fell to a three-month low. According to Hougan, market participants took the data to mean that the Federal Reserve's aggressive interest-rate hikes are having the desired effect.
Bitcoin has already dropped 70% from
Read more on tech.hindustantimes.com
