Cryptocurrencies rallied for a second day as U.S. tech stocks also rallied and investors gained insight into the bankruptcy of a major digital asset lender.
Cryptocurrencies rallied for a second day as U.S. tech stocks also rallied and investors gained insight into the bankruptcy of a major digital asset lender.
Bitcoin, the largest digital coin by market value, surged as much as 5.6% on Thursday to once again trade above the closely watched $20,000 level. Ether, the second largest coin, at one point rose 12% above $1,200. The protests were wide-ranging, with the index of 100 of the most watched coins up around 6% and came as the market digested the bankruptcy filing of C Network Ltd.
Meanwhile, the Nasdaq 100 index of tech stocks — which Bitcoin and other cryptocurrencies tend to mimic on a daily basis — also gained as comments from Federal Reserve officials brought lightness. relief for investors concerned about the pace of central bank rate hikes. The spike has the potential to plunge the US economy into a recession. Fed Governor Christopher Waller and Fed Bank of St. President James Bullard. increase point.
Sean Farrell, head of digital asset strategy at FSInsight, wrote in a note: “It is time for mid- to long-term investors (over 1 year) to consider a strong Bitcoin allocation. than.
Crypto investors have been hurt all year as the Fed raised interest rates to fight inflation. Trading volumes have plummeted during the dreaded first half of the year, with spot and derivatives volumes falling across major exchanges.
But much of the news surrounding the Fed’s aggressiveness has been priced in, according to StoneX’s Youwei Yang.
“The rate hike is already priced in, so that’s why it’s here to stay,” Yang said in an interview.
