Bitcoin surges by most in two weeks, trading above $30,000 as investors and strategists say the digital currency is showing signs of bottoming out.
Bitcoin price surged by most in two weeks, trading above $30,000 as investors and strategists say the digital currency is showing signs of bottoming out.
The largest cryptocurrency jumped 5.2% to $30,687 at 2:21 p.m. New York time, its biggest gain since May 15. Ether, and smaller tokens like Avalanche, have been hit beat last week even as Bitcoin was held relatively steady, also rose. Stocks rose in Asia and Europe after China said it would ease Covid curbs, while US markets were closed for the Memorial Day holiday.
“The markets are long overdue for a pullback,” said Hayden Hughes, chief executive officer of social media trading platform Alpha Impact. “Bitcoin has just spent eight straight weeks in the red territory and is technically oversold to the point that we usually only see bear market bottoms.”
The correlation between Bitcoin and equities began to break down last week as the S&P 500 Index posted its biggest weekly gain since November 2020, while Bitcoin fell for an eighth straight week.
“I expect this gap to narrow a bit shortly as crypto catches up,” Shiliang Tang, chief investment officer at crypto fund LedgerPrime, said in an email.
Ether rallied as much as 7.7% on Monday while Avalanche and Solana gained 12% and 7% respectively before giving up some of those gains.
“On Alpha Impact, we are seeing a lot of buying in Ether and some altcoins, and these patterns reflect what we saw at the bear market bottom in July 2021 and the local bottom in October,” Hughes said. 1 year 2022.
Trading volume is off due to US holiday.
Joel Kruger, strategist at crypto exchange LMAX Digital, said the rally is “playing under very thin trading conditions over a weekend and into the US holiday season”. “So price action needs to be done with certainty.”
Inflation reports from Spain and Germany on Monday highlighted that the macroeconomic forces that have weighed on cryptocurrencies in recent weeks will not abate. Consumer prices in both countries rose faster than expected in May, adding pressure on the European Central Bank to scrap its crisis-era stimulus measures. Rising interest rates around the world have triggered a sell-off of risk assets this year, sending Bitcoin down 34% since Dec.
