The Bitcoin posted its biggest rally since JulyToday moved out of the tightest trading range in about two years as the dollar’s decline renewed demand for risky assets around the world. The largest cryptocurrency by market value rose as much as 9.6% to $21,244 as of 10:03 a.m. in New York, the biggest gain since Aug. 27, and outperforming most other major tokens such as ether. .
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bitcoin and ether they still accumulate a drop of around 50% this year. “It is too early to predict that we are approaching another bull run, but if Bitcoin retakes a higher support level between $22,000 and $25,000, then it could boost investor sentiment and ease selling pressure across the board. crypto assets,” said Tarusha Mittal, co-founder of cryptocurrency betting platform UniFarm.
“Given the fact that central banks around the world remain cautious due to soaring inflation numbers, the current cryptocurrency market surge could be short-lived.“, it adds. The Bloomberg Dollar Spot Index fell 0.9% on Friday after reaching this week’s highest level on record. All currencies in the Group of 10 strengthened against the dollar, and the risk-sensitive Australian dollar , and the Norwegian krone led the gains.
In September, Bitcoin has been stuck in the narrowest trading range in almost two years, reflecting partly the uncertainty about how far central banks will go when raising interest rates in the face of the slowdown in the world economy. Amid the lack of direction, some analysts have noted that activity in futures markets suggests Bitcoin may be about to break out.
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Riyad Carey, an analyst at crypto asset research firm Kaiko, highlighted an increase in open interest in bitcoin futures in some of the biggest exchanges. “It appears there was a bit of pent-up demand for BTC (and BTC volatility), which has been trading in a relatively tight range for the past two months with decreasing volatility,” Carey said in a direct message via Twitter.
Friday’s move was unusual, as bitcoin outperformed nearly every major token that Bloomberg tracks. The MVIS CryptoComparte Digital Assets 100 index advanced 6.1%. The smaller so-called altcoins typically fluctuate by magnitudes greater than bitcoin, the industry leader.
BLOOMBERG
