Cryptos Rebound From Binance Wobble With Bitcoin Heading To $36,000
Bitcoin
and other cryptocurrencies jumped on Wednesday, rebounding from a selloff this week amid regulatory pressure on industry giant Binance and returning to a bullish streak that has defined trading for much of the year.
The price of Bitcoin has risen 6% in the past 24 hours to $28,500, a level reached last week for the first time since June 2022, as the crypto crash accelerated with a series of business failures across the sector.
“Investors’ appetite for a bit more risk is coming back,” said Susannah Streeter, analyst at broker Hargreaves Lansdown. “There are growing expectations that the Federal Reserve may raise interest rates again at its next meeting, but it is still believed to be near the top of peak rates, especially as bank lending is expected to tighten, which will cause a drag on the economy.”
In fact, Bitcoin has led stocks higher in recent weeks – better than
Dow Jones Industrial Average
and
S&P 500
– Amidst expectations that the Fed will become more accommodating in monetary policy. A wave of interest rate hikes over the past year has hammered demand for assets most sensitive to risk, such as stocks and crypto, but traders are now hoping the worst of this inflation-fighting campaign is over.
The regulatory backdrop is far from clear, but traders are likely to continue to take cues from the macro picture in the near term. That could offer an opportunity for Bitcoin to top the psychologically key level of $30,000 – a zone prices haven’t seen since the bear market turned more violent last summer. And there is a path to even higher price levels.
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“Bitcoin has confirmed a breakout above previous resistance around $25,200 in a positive medium-term trend, suggesting a base is in place,” said Katie Stockton, managing partner at technical research firm Fairlead Strategies, describing that Bitcoin now meets strong support around $25,000 level.
“Secondary resistance is near $35,900,” Stockton said. “Long-term momentum has turned the corner in favor of Bitcoin, which is seen as the crypto market leader.”
Beyond Bitcoin,
Ether
— the second-largest crypto — advanced 5% to $1,825. Smaller cryptos or altcoins were even more buoyant, too
Cardano
rip 11% higher and
Polygon
jumped 8%. It was more of the same for memecoins, too
Dogecoin
jumps 6% and
Shiba Inu
up 5%.
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Write to Jack Denton at [email protected]
