The crypto bull market exploded on Tuesday as Bitcoin (BTC) rose above $57,000 for the first time in more than two years, but for traders who were hoping for a big pullback as an opportunity to allocate their funds. It was a discouraging move. Become the top cryptocurrency.
The cryptocurrency continued its rally, but stocks traded in a hold pattern as investors remained patient after the S&P and Dow hit record highs last week. Many people are currently waiting for Thursday's PCE index report, a key inflation measure in the Fed's interest rate setting decisions, before increasing their exposure to the market.
As of the closing bell, the S&P and Nasdaq finished in the green, up 0.17% and 0.37%, respectively, while the Dow was down 0.25%.
Bitcoin bulls extended Monday's gains in Tuesday's trading, pushing Bitcoin to an afternoon high of $57,660, its highest since December 3, 2021, according to data provided by TradingView. Ta. At the time of writing, Bitcoin was trading at $56,800, an increase of $4.1. % on the 24 hour chart.
BTC/USD Charts by TradingView
“A variety of factors influence market sentiment and the rise in crypto prices,” Bakrom Saiduloev, product lead at Mercurio, said in a note to Kitco Crypto. “In my opinion, this recent rise can be primarily attributed to the upcoming halving event and the expectations surrounding it. Historically, these events have been associated with a decline in supply leading to an increase in scarcity, It was associated with a significant price increase for Bitcoin to boost demand.
Saiduloev said the halving “remains a core bullish factor for Bitcoin, as various parties expect its impact on Bitcoin's price trajectory in the coming months, and will remain a key factor in steering the cryptocurrency as a whole.” ”.
He added, “The S&P 500 index has reached a new record high, and investors' positive attitude spreading from the traditional market is also a contributing factor.''
As for how long the uptrend will last, Saiduloev said the impact gold ETFs have on gold prices will give insight into the trajectory Bitcoin prices may follow.
“The creation of the first gold-backed exchange-traded fund in 2004 significantly accelerated the rise in the gold price, which continues to rise 20 years later,” he said. “Similarly, Bitcoin’s ongoing rally suggests a similar pattern could emerge in the crypto market.”
“Furthermore, expectations surrounding the possible launch of a Bitcoin ETF are fueling investor optimism, leading to increased demand and upward price momentum,” Saiduloev said. “If historical trends are any indication, these events could fuel further gains in Bitcoin prices, leading to sustained year-over-year growth similar to gold.”
Recent rally above key resistance levels suggests Bitcoin could peak at $200,000 as the bull market continues into late 2025, according to veteran trader Peter Brandt It is said that they are doing so.
Bitcoin updates
With momentum above the upper bound of the 15-month channel, the target for the current bull market cycle, scheduled to end in August-September 2025, is raised from $120,000 to $200,000. $BTC
A close below last week's low invalidates this interpretation. pic.twitter.com/19ZXpAQW0v— Peter Brandt (@PeterLBrandt) February 27, 2024
Altcoin rotation underway
Performance among the top 200 tokens was mixed on Tuesday, with most projects posting gains, as crypto traders switched from recent high-flying altcoins to more promising tokens in the short term.
Daily cryptocurrency market performance. Source: Coin360
The best performing meme coins were Pepe (PEPE) with an increase of 50.6%, followed by FLOKI (FLOKI) with an increase of 35.4% and dogwifhat (WIF) with an increase of 31.5%. The biggest losses were recorded by COTI (COTI), down 17.3%, World Coin (WLD), down 12.15%, and SingularityNET (AGIX), down 10.7%.
Currently, the total market capitalization of cryptocurrencies is $1.5 trillion, with Bitcoin controlling 38%.
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