Bitcoin
and other cryptocurrencies advanced Wednesday, reclaiming key levels as traders bought a recent dip in cryptos amid upbeat risk sentiment in wider markets as U.S. stocks continued their march into record-high territory.
The price of Bitcoin has risen 4% over the past 24 hours to $40,300, reclaiming the psychologically important $40,000 level after the largest crypto slid below $39,000 earlier in the week, its lowest level in more than a month. Bitcoin remains well below its recent peak above $48,000, reached during a trading frenzy amid the U.S. approval of spot Bitcoin exchange-traded funds—a long-awaited catalyst that is positive for tokens but ushered in a “sell the news” dynamic.
“The price drop to $38,500 attracted buyers on the background of another update of all-time highs by leading U.S. indices, which supported risk appetite,” said Alex Kuptsikevich, an analyst at broker FxPro. “Bitcoin’s price is 1706095507 testing the $40,000 level. This is an attempt to break the downtrend by climbing above the previous day’s highs. Now, it seems that the sellers in Bitcoin have not yet exhausted their potential, and we should be ready for a new momentum of decline to $37,500.”
Indeed, Bitcoin has rebounded amid a surge in the U.S. stock market, with the
S&P 500
poised to make its fourth record high in as many trading days on Wednesday. The
Dow Jones Industrial Average,
too, has similarly hit peak levels in recent days. Cryptos often have shown themselves to be correlated to other risk sensitive assets—like stocks—so it’s not surprising that big gains in equities have trickled through to tokens.
Beyond Bitcoin,
Ether
—the second-largest crypto—gained 1% to $2,250. Smaller tokens or altcoins were rising, with
Cardano
and
Polygon
both up 4%. Memecoins exhibited more of the same, with
Dogecoin
advancing 4% and
Shiba Inu
jumping 3%.
Write to Jack Denton at [email protected]
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