Soaring Bitcoin
|Market picture
The cryptocurrency market rose 1% in 24 hours to $2.28 trillion. The market cooled off during the day, moving away from local highs above $2.30 trillion, which was the highest in more than two weeks. Sentiment jumped sharply to ‘greed’, reaching the sixty-five level, the highest since late July.
The price of Bitcoin traded above $66.5K for a while on Tuesday, matching the high of 30 July. This is a very nominal break above the previous high and an attempt to consolidate above the resistance of the descending channel. An important driver is the continued optimism in the US equity markets. Barring any sudden bouts of profit-taking, Bitcoin could consolidate the breakout from the multi-month downtrend.
The potential first target of the new bull rally looks to be the area of historical highs as it approaches $74K, with a more distant target of $80K by the end of the year.
News background
According to CoinShares, global crypto fund investments increased by $407 million last week, following outflows of $147 million the week before. Bitcoin investments increased by $419 million, Solana investments increased by $0.6 million, and Ethereum investments decreased by $10 million.
According to experts, BTC’s growth is being fuelled by expectations of new stimulus measures in China. Over the weekend, Chinese Finance Minister Lan Fo’an said that the country will soon introduce a package of additional fiscal measures to support economic development.
Searches for Bitcoin on Google fell to an annual low. Searches for altcoins show a similar dynamic. At the same time, user interest in meme coins remains stable. The segment is recovering despite the massive failure of new coins and the disappointment of traders.
The UAE Central Bank has approved the launch of a dirham-based stablecoin, the AED stablecoin. This coin is leading the race to become the first issuer of a regulated stablecoin.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.