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Bitcoin prices have rallied past the key $30,000 level.
Dreamstime
Bitcoin
and other cryptocurrencies pushed higher Tuesday, continuing their momentum from a rally on Monday. One analyst outlined that the worst of the bear market for digital assets could be over.
The price of Bitcoin rose 3% over the past 24 hours to above $31,500. While Bitcoin continues to trade at less than half its November 2021 all-time high near $69,000, the largest crypto was holding firmly above the key $30,000 level. Building on a Monday rally, Bitcoin remains well off its lows of about $26,000 reached in the depths of a selloff this month.
“The crypto market’s quick u-turn on Monday seems like it has managed to get out of the long lasting bear market cycle,” said Yuya Hasegawa, an analyst at crypto exchange Bitbank. “However, the key level for Bitcoin in the short term will likely be $32,000, and until the price recovers that level, there still is a risk for significant downside.”
Hasegawa noted that the open interest for Bitcoin futures at major exchanges has been rising, with a funding rate in positive territory indicating that there are more long positions than short positions in the current market. But this also raises the risk that selling pressure could trigger margin calls and the liquidation of positions, exacerbating price declines.
Beyond Bitcoin,
Ether,
the second-largest crypto, also was rallying. The token underpinning the Ethereum blockchain network gained 3% to above $1,950 —well below its all-time high near $4,900 in November 2021 but up from recent lows below $1,800.
Smaller cryptos, or altcoins, also surged.
Cardano
jumped 27% and
XRP
gained 5%. Memecoins — called that because they were initially just internet jokes — were more mixed, with
Dogecoin
up 1% and
Shiba Inu
down less than 1%.
Write to Jack Denton at [email protected]
