News

Bitcoin Rebounds with Cryptos Rally

James L. Flint

• January 24, 2024

Bitcoin and other cryptocurrencies have seen a surge in value, with traders taking advantage of a recent dip in the market. This upward movement comes as U.S. stocks continue to reach record highs, driving positive sentiment in wider markets.

In the past 24 hours, the price of Bitcoin has risen by 4% to $40,300, surpassing the psychologically significant $40,000 level. Earlier in the week, Bitcoin had dipped below $39,000, its lowest point in over a month. Despite this recent recovery, Bitcoin is still far from its peak of over $48,000, which was achieved during a trading frenzy caused by the approval of spot Bitcoin exchange-traded funds in the U.S. This approval was a long-awaited catalyst for the market but ultimately led to a "sell the news" dynamic.

Alex Kuptsikevich, an analyst at broker FxPro, stated that the drop in price to $38,500 attracted buyers due to the positive performance of leading U.S. indices. He suggests that the current attempt to break the downtrend and surpass the previous day's highs may face resistance from Bitcoin sellers, potentially leading to a new decline to $37,500.

It is worth noting that Bitcoin's rebound coincides with a surge in the U.S. stock market. The S&P 500 is expected to reach its fourth consecutive record high on Wednesday, while the Dow Jones Industrial Average has also recently hit peak levels. Cryptocurrencies have often shown a correlation with other risk-sensitive assets such as stocks, so it is not surprising to see this positive impact on tokens.

In addition to Bitcoin's recovery, Ether—the second-largest cryptocurrency—has gained 1% and is now priced at $2,250. Smaller tokens, including Cardano and Polygon, have also seen increases of 4%. Memecoins, such as Dogecoin and Shiba Inu, have followed suit, advancing by 4% and 3% respectively.

Overall, the cryptocurrency market is gaining momentum as Bitcoin and other tokens strive to reclaim key levels. The recent dip has attracted buyers who are optimistic about the positive performance of wider markets. While challenges may lie ahead, the current rally provides hope for further upward movement.