Bitcoin and its siblings appear to be recovering from the damage caused by the FTX crash and the contagions that followed.
The asset hit an intraday and two-month high of $18,287 during the Asian trading session on Thursday morning. BTC has now gained 10% in the last fortnight and is up 4.2% in the last 24 hours.
The world’s largest digital asset has advanced for eight straight days, the longest streak since July, according to Bloomberg. Frank Cappelleri, the founder of CappThesis, commented:
“BTC needs to ride this streak in a similar fashion if its long-term downtrend has any chance of being broken anytime soon.”
Bitcoin comes out of low volatility
As on-chain analytics firm Glassnode noted in its weekly report, Bitcoin has been in a period of historically low volatility. “Such periods have historically preceded explosive market moves, with past examples cutting asset valuations in half and triggering new bull markets,” she stated.
The breakout seems to be happening at the moment, but it remains to be seen if the momentum is sustainable. BTC has gained 10% since the beginning of the year and has been rising since December 30.
— dave the wave 🌊🐫 (@davthewave) January 11, 2023
Additionally, a weakening dollar provides a better trading environment for cryptocurrencies. Tallbacken Capital Advisors founder Michael Purves commented that the near-term outlook is bullish.
“I think risk assets have been rallying because the terminal rate is slowly but surely coming to the fore and positioning has been bearish and in transition, meaning short-term bullish price action.”
Institutions were expected to return to the asset class when the outlook is less murky and confidence resumes.
Elsewhere on Crypto Markets
Total market capitalization reached $925 billion after a 3.3% gain on the day. Nearly $100 million has re-entered the space from the market cycle low on November 22. The next target is the $1 trillion level, which would be a recovery of all losses after the FTX collapse.
Ethereum broke above $1,400 for the first time in nine weeks, following a 5% daily rise. ETH has achieved an impressive 18% in the last fortnight, outperforming its big brother.
Most of the remaining crypto market is in the green, but a handful of coins are posting stronger gains. These include XRP, up 6.5%, Litecoin (LTC), up 5.6%, Avalanche (AVAX), up 27%, and Near Protocol (NEAR), up 11% in the day.
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This post Bitcoin Records Longest Rally Since July, Volatility Returns
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