- Bitcoin and other cryptocurrencies rebounded to test 18-month highs later in the week following a correction.
- An enlightened macroeconomic backdrop, along with hopes that the Federal Reserve has completed its interest rate hike cycle, has lifted cryptocurrencies alongside the Dow Jones Industrial Average and the S&P 500.
- Beyond Bitcoin, the second-largest cryptocurrency, Ether, rose by 4% to $2,080. While Cardano surged by 10%, Polygon experienced a 2% drop. Memecoins witnessed significant gains.
Bitcoin Price Reaches 18-Month Highs Despite SEC Obstacles; What’s Next for Crypto Prices?
Bitcoin Price Reaches 18-Month High
Bitcoin and other cryptocurrencies rebounded to test 18-month highs later in the week following a correction. Analysts anticipate further potential upside if the momentum of digital assets can be sustained.
Bitcoin’s price increased by 4% in the last 24 hours, reaching $37,450, having traded as high as $37,900 earlier, testing the highest levels since cryptocurrencies entered a severe bear market in May 2022.
The largest digital asset had experienced a decline in recent days, falling to the $35,000 zone, but the rally, resulting in about a one-third increase over the past month, appears to have ended the calm period in crypto trading and is currently continuing.
Alex Kuptsikevich, an analyst at FxPro broker, stated, “The crypto market has experienced a new surge in growth. It does not give up right now… the probability of further gains is higher than a downside reversal. If we accept that the Tuesday drop was a correction, it led to $45,000 to $46,000.”
Bitcoin is advancing positively alongside a series of factors. Among these factors, there is ongoing optimism that regulators will approve the first spot Bitcoin exchange-traded fund (ETF) in the near future. This situation is expected to trigger a new wave of investor interest. An enlightened macroeconomic backdrop, coupled with hopes that the Federal Reserve has completed its interest rate hike cycle, has also lifted cryptocurrencies alongside the Dow Jones Industrial Average and the S&P 500.
Thoughts on the Crypto Rally from JPMorgan
However, there appear to be impending risks for digital assets. According to analysts at J.P. Morgan, the crypto rally seems overstretched. The support provided by the potential approval of a spot Bitcoin ETF is excessive, expected gains from changes in supply have largely been priced in for the coming year, and the regulatory environment remains unfavorable, according to analysts in a recent note.
Beyond Bitcoin, the second-largest cryptocurrency, Ether, rose by 4% to $2,080. While Cardano surged by 10%, Polygon experienced a 2% drop. Memecoins witnessed significant gains, with Dogecoin rising by 10%, and Shiba Inu increasing by 7%.
