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Crypto prices rose over the weekend.
Dreamstime
Bitcoin and other cryptocurrencies rose on Monday as optimism swept through both the digital asset space and the stock market.
The price of
Bitcoin
rose 6% in the last 24 hours to $ 22,400 – the highest levels since a sale in mid-June brought the largest crypto down from $ 30,000 to as low as $ 18,000.
“Bitcoin is back above the $ 20,000 level as Wall Street becomes a little more optimistic about risky assets,” said Edward Moya, an analyst at broker Oanda.
Other digital assets were also on the rise.
Ether,
the second largest token, gained 11% to $ 1500, and similarly reached its highest levels in more than a month. It was more of the same among altcoins, or smaller cryptocurrencies, with
Solana
increases 7% and
Cardano
jumps 10%. Memecoins – originally meant as internet jokes – were also strong, as
Dogecoin
and
Shiba Inu
increased by 7% and 9%, respectively.
Action in the market for cryptocurrency derivatives suggests that traders have strongly opposed Bitcoin.
The aggregate open interest rate on Bitcoin futures – which represents the total value locked in current contracts that bet on Bitcoin’s future price – is at one of the highest levels since mid-June. This is a strong signal that traders are looking for position, as a new major move is expected.
In addition, the financing rate for Bitcoin futures is solidly positive for the first time since the beginning of the month, which indicates that the most popular bet among traders is that the largest crypto will rise.
Bitcoin’s movement higher follows similar actions in the stock market, where
Dow
and
S&P 500
saw its best day in a month last Friday and climbed again on Monday. While crypto should theoretically trade independently of the regular financial markets, Bitcoin and its peers have been shown to be largely correlated to stocks, and especially to technology stocks.
Both equities and cryptocurrencies suffered last week when red-hot inflation data raised fears that the Federal Reserve must go even more aggressively to tighten monetary policy, and risk inciting a recession. But investors seem to have shaken off these concerns, with both equities and cryptocurrency benefits.
“The crypto market has seen an upswing,” said Marcus Sotiriou, an analyst at digital assets broker GlobalBlock. “When the market begins to react positively to negative news, this is a signal that a local bottom may be in place for now.”
Write to Jack Denton at [email protected]
