And the days ahead hold a key macroeconomic stimulus that could shift the needle as well.
Bitcoin’s price rose 3 percent in the past 24 hours, above $27,250, hovering above $26,000, the level at which the biggest digital asset has traded since mid-August. The move is a victory for Bitcoin, which has been struggling with historically low volatility and low trading volume. Both are signs of waning interest in the crypto space.
“As the summer draws to a close and normal trading activity resumes, the market may see volatility again after Bitcoin hit a record 30-day low in the first two weeks of August,” he said. Greco, an analyst at digital asset group Fineqia.
Traders are placing big bets on Bitcoin in the perpetual futures market, the most liquid of all cryptos. On Binance, the world’s largest bitcoin futures market, open interest — money locked up in active derivatives contracts — rose 14% in the past 24 hours to more than $2.6 billion. According to data obtained by Coinglass.
More broadly, like
Dow Jones Industrial Average
And
S&P 500
In the stock market, the looming Federal Reserve decision this week could move crypto prices this week.
The Fed is widely expected to keep interest rates on hold when it issues its next decision on Wednesday, with investors poised to scrutinize signs from the central bank that another rate hike is possible in November.
Borrowing costs have risen to generational levels since last year as the Fed seeks to control inflation, putting significant pressure on cryptos and stocks.
Signs that the central bank is done hiking rates and may begin to lower them next year have the potential to accelerate recent gains for Bitcoin if traders start piling into riskier assets — and perhaps cryptos should shake off their funk.
Beyond Bitcoin,
Ether
-The second largest crypto-rose 2% to $1,650. Smaller tokens, or altcoins, were also higher.
Cardano
And
Polygon
Both sell for around 2% of the greenback. Memecoins were more mixed with the two.
Dogecoin
And
Shiba Innu
Earning less than 1%.
Write to Jack Denton at [email protected]
