Bullish traders, a strong technical market backdrop, and tight token supply all support Bitcoin's rally.
Bitcoin and other cryptocurrencies rallied Thursday to fresh 18-month highs, carrying forward the momentum from a recent rally and supported by a number of factors that suggested gains can continue. The price of Bitcoin has risen 4% over the past 24 hours to above $36,800, its highest point since May 2022, when cryptos plunged into a brutal bear market after the stablecoin network Terra collapsed and set off a string of industry bankruptcies.
The largest token has climbed by more than one-third in just weeks, spurring calls of a new bull market and ending a multi-month period of historically low volatility and trading volumes. “Looking ahead, the breakthrough above the $37,000 mark will be a significant milestone and our outlook is optimistic concerning Bitcoin’s price action,” said Douglas Comin, a senior crypto options trader at the investment group XBTO. “The momentum appears poised to persist as the cryptocurrency market continues to garner attention from institutional investors.” Bitcoin continues to vastly outperform the Dow Jones Industrial Average and S&P 500, gaining on the back of mostly crypto-native catalysts, though the backdrop for risk-sensitive assets more broadly has also improved. The key force behind this token rally has been hopes that U.S. regulators will soon approve the first spot Bitcoin exchange-traded fund , which would be expected to usher in a fresh wave of retail and institutional investor interest in cryptos.For one, traders are extremely bullish, piling into big bets in the crypto derivatives market that should put upside pressure on prices. There is a significant quantity of Bitcoin call options expiring next month around both the $40,000 and $50,000 mark, Rachel Lin, CEO of trading platform SynFutures, noted this week. Call options are contracts that give traders the right to buy an asset at a determined price. Another sign of bullishness is the Crypto Fear and Greed Index, which hit the highest level this week since November 2021, when Bitcoin was near all-time highs around $69,000. Two, the technical market backdrop is supportive of a rally. “Should Bitcoin see another breakout, it would put next resistance near $42,200,” Katie Stockton, managing partner at technical research firm Fairlead Strategies, wrote in a note this week, when Bitcoin was trading below $35,000. Alex Kuptsikevich, an analyst at broker FxPro, has also said Bitcoin’s current levels are “low-density territory”—a range between roughly $35,000 and the low $40,000s in which Bitcoin hasn’t spent much time during bull runs in 2021 and the 2022 selloff. Three, the supply of tokens is historically tight, with the amount of Bitcoin in the hands of long-term holders who are reluctant to sell near an all-time high, according to analysts at crypto market research group Glassnode. Tight supply in a market where bullish traders are clamoring for crypto has the potential to supercharge gains. “The coming months are shaping up to be exciting ones for Bitcoin investors,” the Glassnode analysts said. Beyond Bitcoin, Ether —the second-largest crypto—gained 2% to above $1,900. Smaller tokens or altcoins posted solid gains, with Cardano and Polygon popping 5% each. Memecoins also advanced, with Dogecoin 2% in the green and Shiba Inu 4% higher.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Crypto Update | Hong Kong Spot Crypto ETFs?Noelle Acheson is the former head of research at CoinDesk and Genesis Trading. This article is excerpted from her Crypto Is Macro Now newsletter, which focuses on the overlap between the shifting crypto and macro landscapes. These opinions are hers, and nothing she writes should be taken as investment advice.
Read more »
Crypto bank SEBA obtains Hong Kong license for crypto-related servicesSEBA Bank said today that its subsidiary in Hong Kong has obtained an official license from the SFC to operate crypto-related services.
Read more »
How The Bitcoin Halving Will Affect Mining And New Crypto Startups Are Raising MillionsCrypto Blog
Read more »
Widening Crypto Rally Lifts Total Crypto Market Cap to $1.3TBitcoin (BTC) inched closer to $36,000 in the last 24 hours, as the widening altcoin rally and risk-on sentiment in traditional markets lifted the total value of the crypto markets to a 16-month high. André Dragosch, who was recently appointed as head of research at ETC Group, discusses his crypto markets outlook.
Read more »
Crypto Markets Gain $50B Overnight as Bitcoin Price Explodes to 18-Month High (Market Watch)Crypto Blog
Read more »
Cryptocurrencies Price Prediction: Dogecoin, Crypto & Bitcoin – European Wrap 9 NovemberDogecoin, one of the largest meme coins in the crypto ecosystem, is on track to possibly extend its gains further this week.
Read more »