Bitcoin Price Today Breaks Above $20,000 Again; Celsius Removes Uncertainty
Cryptocurrencies rose for the second day as US tech stocks also posted an advance and investors got more clarity on the bankruptcy of a major digital-assets lender.
Bitcoin, the largest digital coin by market value, rose as much as 5.6% on Thursday to once again trade above the closely watched $20,000 level. Ether, the second-biggest, surged 12% at one point to above $1,200. The rallies were broad-based, with an index of 100 of the most-tracked coins rising roughly 6%, and happened as the market digested Celsius Network Ltd.'s filing for bankruptcy, which cleared a major overhang.
Meanwhile, the Nasdaq 100 index of technology stocks -- which Bitcoin and other cryptos tend to mimic on a day-to-day basis -- also gained as comments from Federal Reserve officials brought relief to investors concerned about the central bank's aggressive pace of rate hikes potentially sinking the US economy into a recession. Fed Governor Christopher Waller and Fed Bank of St. Louis President James Bullard both said they would back a 75-basis-point hike in July after a hot inflation print, whereas some market participants had been anticipating the central bank could institute a 100-basis point increase.
“This is the time for medium and long-term investors (1+ year) to consider allocating to Bitcoin more aggressively,” wrote Sean Farrell, head of digital asset strategy at FSInsight, wrote in a note.
Crypto investors have been hurt all year as the Fed hikes interest rates to fight inflation. Trading volumes have plummeted amid the dreadful first half, with spot and derivatives volumes declining across major exchanges.
But much of the news around the Fed's aggressiveness has already been priced in, according to StoneX's Youwei Yang.
“Interest rate hikes are priced in so that's why it's holding in here,” Yang said in an interview.