Bitcoin (BTC-USD) is on track for weekly gains of more than 3.5%, with the world’s largest cryptocurrency by market capitalization briefly crossing the $29K mark earlier in the week to hits its highest level since June last year.
The advance has been due to a combination of factors, chief among them a renewed interest among investors in risky assets and growth areas such as technology stocks in the wake of shaken confidence in the traditional banking sector. Hopes of the Federal Reserve possibly ending its rate-hiking cycle have also helped sentiment.
However, bitcoin (BTC-USD) began the week on a negative note, as regulators continued to crackdown on cryptocurrencies and exchanges. The latest target was Binance, with the world’s largest crypto exchange and its cofounder and CEO Changpeng “CZ” Zhao being sued by the Commodity Futures Trading Commission on allegations of violating certain trading and derivatives rules.
“It’s impossible to ignore cryptos at the moment given how they’ve traded throughout the banking mini-crisis, especially when you consider how directly crypto was impacted, and of course, all of the regulatory attention the industry has attracted,” said OANDA analyst Craig Erlam.
“Bitcoin is slightly lower today but that doesn’t really matter considering it remains around recent highs. As for where next, it’s anyone’s guess. Recent moves may not make sense to a lot of people and most explanations may be nonsense but you can never ignore the power of a crypto rally,” Erlam added.
Bitcoin (BTC-USD) briefly touched a 10-month high of ~$29.2K on Thursday. It traded within the $27.5K-$28.5K range this week.
The total crypto market cap currently stands at $1.19T, an increase of 0.71% over Thursday, according to CoinMarketCap.
- Bitcoin (BTC-USD) rose 1.02% to $28.46K at 2145 ET and ether (ETH-USD) was up 1.23% to $1.83K.
- Read why SA contributor Jason Appel believes that despite the tremendous volatility shown by bitcoin (BTC-USD), the cryptocurrency has demonstrated “incredible resilience and has a setup for prospective big gains in the next 18 months.”