- Bitcoin and other cryptocurrencies, after a rally that brought their prices to the highest levels in 20 months in recent days, remained almost unchanged on Friday.
- The price of Bitcoin dropped by 1% in the last 24 hours, falling to $43,400, causing the largest digital asset to pull back from its recent peak above $44,000.
- Similar to Bitcoin, other cryptocurrencies also continued their rally, with the second-largest token, Ether, rising by 4.5% to $2,350.
As the volatility of Bitcoin and cryptocurrencies decreases, BTC manages to stay above $43,000: Has the bear market come to an end?
Bitcoin Price Gains Strength Above $43,000
Bitcoin and other cryptocurrencies, after a rally that brought their prices to the highest levels in 20 months in recent days, remained almost unchanged on Friday. The U.S. job report emerged as a macroeconomic catalyst that could stir up cryptocurrencies in the coming days.
The price of Bitcoin dropped by 1% in the last 24 hours, falling to $43,400, causing the largest digital asset to pull back from its recent peak above $44,000. This marks the highest level since April 2022, indicating that cryptocurrencies are at their highest point since entering a harsh and prolonged bear market.
Bitcoin has gained approximately two-thirds in value since mid-October, breaking out of a multi-month period of subdued crypto trading and starting to call for a new bull market. Rachel Lin, the CEO of SynFutures, said:
“The performance of this week has been the best since October’s end when Bitcoin rose above $30,000. The performance of this week seriously weakens the idea that we are still in a bear market rally.”
Expectations for Spot ETF Drive Momentum
A series of factors that have contributed to Bitcoin’s upward momentum include optimism that U.S. regulators will soon approve the first spot Bitcoin exchange-traded fund (ETF); this is expected to bring a wave of new investor interest to cryptocurrencies. An evolving macroeconomic background, such as expectations that the Federal Reserve will cut interest rates several times next year, has also helped. The fact that token supply is historically tight, and there are few sellers in the market, is also pulling prices higher.
Similar to Bitcoin, other cryptocurrencies also continued their rally, with the second-largest token, Ether, rising by 4.5% to $2,350. Smaller cryptocurrencies or altcoins also saw gains; Cardano rose by 9%, while Polygon increased by 4%. Memecoins followed a calmer trajectory, with Dogecoin rising by 1% and Shiba Inu by 4%.
