Cryptocurrencies extend the bounce, Bitcoin jumps 9%, Ethereum up 11%

Dhwani Mehta FXStreet

Bitcoin, the world’s most traded virtual currency, is seen building on its last two days of rebound from $ 9900 levels, as markets continue to hold the interest in the digital currency and look to buy the dips, despite the concerns over the Asian regulatory clampdown. As of writing, the spot jumps nearly 9% to $ 11,545, having hit the highest levels in three days at $ 11,723.

Despite the solid rebound, the spot still remains confined within the $ 3000 tight range, as markets believe the bulls are gathering pace for further upside. According to Omkar Goldbole, Crypto Analyst at CoinDesk, “persistent demand around the $10,000 mark appears to have not only neutralized the immediate bearish outlook on bitcoin but also hints the cryptocurrency could be building a base for an eventual move higher.”

The two-way price action witnessed in the last 24 hours is indicative of indecision in the marketplace and a decisive move (in either direction) would likely set the tone for the market. That said, the price chart analysis today puts the odds of a decisive move higher above 50 percent, Omkar added.

Meanwhile, the latest uptick in prices is seen after Florida-based firm Weiss Ratings released a ratings assessment of cryptocurrencies, assigning letter grades to them, yesterday. Bitcoin received a C+ grade and Ethereum, the second most valuable cryptocurrency, received a B. The firm noted that Bitcoin has excellent security and "widespread adoption."

Elsewhere, Dan Ciotoli from Bespoke Investment Group told CNBC a day before that Bitcoin is likely to reach $20,000 and $30,000 by the end of 2018 for the cryptocurrency, adding that, “The driver that I think is going to bring bitcoin up in 2018 is bitcoin-denominated commerce.”

All of the most-traded cryptocurrencies advanced further, with Ethereum up 11.43% at $ 1090, Ripple rises 2% while Bitcoin cash rallies 5.50%, according to the CoinMarketCap data. Meanwhile, the cryptocurrency market cap has risen to $ 568 billion, with Bitcoin’s market cap heading back towards the $ 200 billion figure.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

EUR/USD keeps the rangebound trade near 1.1850

EUR/USD is still under pressure, drifting back towards the 1.1850 area as Monday’s session draws to a close. The modest decline in spot comes as the US Dollar picks up a bit of support, while thin liquidity and muted volatility, thanks to the US market holiday, are exaggerating price swings and keeping trading conditions choppy.

GBP/USD flirts with daily lows near 1.3630

GBP/USD has quickly given back Friday’s solid gains, turning lower at the start of the week and drifting back towards the 1.3630 area. The focus now shifts squarely to Tuesday’s UK labour market report, which is likely to keep the quid firmly in the spotlight and could set the tone for Cable’s next move.

Gold battle around $5,000 continues

Gold is giving back part of Friday’s sharp rebound, deflating below the key $5,000 mark per troy ounce as the new week gets underway. Modest gains in the US Dollar are keeping the metal in check, while thin trading conditions, due to the Presidents Day holiday in the US, are adding to the choppy and hesitant tone across markets.

AI Crypto Update: Bittensor eyes breakout as AI tokens falter

The artificial intelligence (AI) cryptocurrency segment is witnessing heightened volatility, with top tokens such as Near Protocol (NEAR) struggling to gain traction amid the persistent decline in January and February.

The week ahead: Key inflation readings and why the AI trade could be overdone

It is likely to be a quiet start to the week, with US markets closed on Monday for Presidents Day. European markets are higher across the board and gold is clinging to the $5,000 level after the tamer than expected CPI report in the US reduced haven flows to precious metals.

XRP steadies in narrow range as fund inflows, futures interest rise

Ripple is trading in a narrow range between $1.45 (immediate support) and $1.50 (resistance) at the time of writing on Monday. The remittance token extended its recovery last week, peaking at $1.67 on Sunday from the weekly open at $1.43.