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Bitcoin (BTC-USD) and ethereum (ETH-USD) and other cryptocurrencies are rising Thursday, as investors’ risk-on sentiment looms throughout U.S. stocks.
Bitcoin (BTC-USD +4.2%) is flirting with $44K, though slightly below the 200-day simple moving average on a 52-week chart, recently standing at $44.4K. Ethereum (ETH-USD +5.0%) is also creeping up to $3.1K. The two largest cryptos by market cap have been largely range-bound for the better part of two months, in addition to changing hands well below all-time highs in mid-November. “We are neither in an aggressive bull market, nor are we in a bear market,” Strahinja Savic, head of data and analytics at FRNT Financial, told Bloomberg. “Bitcoin, and the broader crypto market, are seeing the effects of macro uncertainty caused by rate hikes, Russia-Ukraine conflict, et cetera.”
Given Bitcoin’s (BTC-USD) positive correlation with U.S. stocks, all three major indices are in the green intraday, with the Dow Jones (DJI) +0.6%, S&P 500 (SP500) +0.9% and Nasdaq (COMP.IND) +1.2%. Not surprisingly, Bitcoin’s positive 30-day correlation with meme stocks recently surpassed April 2020 levels to roughly 0.70, implying that BTC is increasingly acting like some of the most volatile social media-hyped stocks, such as GameStop (GME) and AMC Entertainment (AMC), according to a Twitter post from The Daily Shot.
Is Bitcoin poised for another rally?
“We even were locked in virtually the same range last year before hitting all-time highs in the fall,” Leah Wald, CEO at digital-asset investment manager Valkyrie Funds told Bloomberg. “Given this, and the record amount of investment we are seeing in the industry across the board, the momentum is slowly building for another rally, even if this is not being reflected right now in price action. We would not be surprised to see another record high before the turn of the year.”
More cryptos: binance coin (BNB-USD +2.9%), ripple (XRP-USD +2.5%), cardano (ADA-USD +11.4%), terra (LUNA-USD -0.9%), solana (SOL-USD +11.0%), avalanche (AVAX-USD +3.3%), polkadot (DOT-USD +2.6%), dogecoin (DOGE-USD +7.4%), shiba inu (SHIB-USD +3.4%), polygon (MATIC-USD +6.3%), wrapped bitcoin (WBTC-USD +4.1%), litecoin (LTC-USD +3.2%), NEAR protocol (NEAR-USD +4.4%), cosmos (ATOM-USD +5.3%), chainlink (LINK-USD +4.3%) and uniswap (UNI-USD +8.3%).
On Wednesday, Cardano tokens outshined peers after its inclusion in new Grayscale fund.