Bitcoin and other cryptocurrencies experienced a surge on Thursday, driven by growing risk appetite in the market. Investors are increasingly confident that the Federal Reserve will no longer raise interest rates in its fight against inflation.
The price of Bitcoin witnessed a 2.5% increase over the past 24 hours, reaching $35,300. This surge brings it above last week’s peak of around $35,000 and close to the $36,000 mark. It’s worth noting that this is the highest level Bitcoin has reached since the crypto market entered a bearish phase in May 2022. In just a few weeks, the largest digital asset has rallied by over 30%, breaking free from months of low volatility and trading volumes to regain its characteristic momentum.
According to Alex Kuptsikevich, an analyst at broker FxPro, “Bitcoin broke through the upper boundary of its weeklong consolidation, reaching $36,000 early on Thursday before retracting. Technically speaking, this recent jump confirms a bullish bias. Bitcoin may not encounter significant resistance until $41,000, but the momentum could potentially push it up to $46,000, which marks the location of the last reversal.”
Crypto Prices Surge on Multiple Forces
Multiple forces have contributed to the recent surge in cryptocurrency prices. One key factor is the growing optimism surrounding the potential approval of a Bitcoin exchange-traded fund (ETF) by the Securities and Exchange Commission (SEC). Should the ETF be approved, it is expected to generate increased interest from both retail and institutional investors.
Another influential factor is the geopolitical risk stemming from conflict in the Middle East. This risk has reignited calls for Bitcoin to be seen as a safe haven asset, much like gold.
Adding further momentum to the crypto market’s gains is the Federal Reserve’s recent monetary policy decision. Although the central bank has indicated that it may still raise interest rates as a means to combat inflation, market pricing of rate futures suggests that traders are confident the Fed’s work in this regard is complete. Over the past year, the Fed has implemented a rapid series of interest rate hikes in response to surging inflation, which has had a detrimental effect on risk-sensitive assets such as stocks and cryptocurrencies.
In response to the Fed’s decision and the market’s dovish outlook, Bitcoin, along with traditional benchmarks like the Dow Jones Industrial Average and S&P 500, has experienced positive growth. This serves as a reminder that macroeconomics continues to play a significant role in the minds of crypto traders.
Rising Crypto Market: Ether and Altcoins Show Positive Momentum
Introduction
Ether’s Promising Growth
While Bitcoin remains the leading cryptocurrency, Ether has been steadily gaining momentum. As of now, Ether has risen by more than 1% to reach a value of $1,830. This substantial growth showcases the increasing confidence investors have in Ether’s potential.
Altcoins in the Spotlight
Not to be overshadowed by Ether, altcoins have demonstrated extraordinary resilience and growth. Cardano, for instance, has experienced an impressive spike of 7%, indicating a rising interest among crypto enthusiasts. Similarly, Polygon has witnessed a significant increase of 6%, further cementing altcoins’ position in the market.
Memecoins: A Continuing Trend
Memecoins continue their upward trajectory, captivating both investors and enthusiasts alike. Dogecoin, for instance, has surged by an astounding 5%, solidifying its role as a major player within the crypto sphere. Shiba Inu has also demonstrated promising growth, marking a gain of 4%.
To conclude, while Bitcoin signifies the foundation of the cryptocurrency market, other digital currencies are showing promising signs of growth. Ether, along with various altcoins, has showcased remarkable resilience in recent times. Furthermore, memecoins have continued to captivate investors with their unique appeal. As the world of cryptocurrencies expands and evolves, staying informed about these emerging trends becomes increasingly vital.
