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Bitcoin extends its rally to $53,000 today

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Bitcoin rose 1% Monday morning in New York, and Matrixport analysts say $62,000 could happen next month of this year

Bitcoin continued to rise on Monday after a brief period of stability, while ether rose to highs not seen in nearly two years. Stocks have been trading sideways ahead of a busy week of economic news and with the possibility of a government shutdown looming.

Bitcoin (BTC) rose more than 3% on Monday morning to surpass $53,000 in New York after rising as much as 2.2% over the weekend. even as data showed that weekend trading activity was declining. This is the first time the largest cryptocurrency has risen above $53,000 since November 2021.

Bitcoin

The price of Ethereum (ETH) hovered around $3,100 on Monday, continuing a rally that saw the cryptocurrency breach the $3,000 level for the first time since April 2022.

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The share of Bitcoin traded on weekends has been declining for a number of years, falling from 24% in 2018 to 17% in 2023, according to data from Kaiko.

“The decline indicates deteriorating liquidity conditions over the weekends and can be explained by increased institutional participation and deteriorating market infrastructure.” analysts at Caico said on Monday. “So far in 2024, only 13% of all Bitcoin transactions between January 1 and February 20 were carried out over the weekend.”

Analysts from research firm Matrixport say Bitcoin’s price target of $63,000 by March 2024 — which they set in October 2022 — remains achievable, especially given the timing of the next halving cycle.

Read more: Ethereum Price Prediction 2023, 2024, 2025: Will ETH Price Cross The $2,000 Again This Year?

What does Bitcoin lean towards?

“Historically, Bitcoin has also tended to rally to halvings, although the recent halving cycle has been strongly influenced by post-Covid-19 stimulus injections by various governments around the world.” Matrixport researchers wrote in a recent note.

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Researchers from Caico added that it’s possible that ether’s rally has some steam, noting that daily spot trading volume exceeded $5 billion for almost the entire month of February.

Analysts say macroeconomic conditions are pushing investors into “safe haven” assets. Some have noted that euro zone interest rate expectations are falling faster than US interest rate expectations are rising, which could cause the euro to fall against the US dollar.

“A more permanent weakening of confidence in US economic strength, given geopolitical and domestic policy trends as well as accumulated pressures in the banking industry and labor market, could encourage a closer look at ‘irrelevant’ non-sovereign currencies [such as] Bitcoin and FX.” “Crypto is Macro Now,” said Noelle Acheson, author of the “Crypto is Macro Now” newsletter.

Stock gains.

Stocks posted modest gains on Monday, with the S&P 500 and Nasdaq Composite indexes rising about 0.1% and 0.2%, respectively, shortly after the open. Tom Isay, founder of Sevens Report Research, said congressional leaders have until Friday to secure the budget or the government will go into lockdown, which could put pressure on stocks.

The Fed’s preferred measure of inflation, the Core Personal Consumption Expenditures Price Index. is scheduled for release on Thursday, Essaye said, a key gauge that traders will be watching, especially since stocks have largely managed to avoid a massive sell-off after previous disappointing inflation rates.

“One of the main reasons stocks were able to outpace the hot CPI and PPI is because Chicago Fed Chairman Goolsbee said the Fed doesn’t really track the CPI and instead focuses on the PCE price index,” Essaye said. “Basic”. “Well, that’s what’s coming on Thursday, so it’s best not to show rising inflation like the CPI did, otherwise markets will have to fully acknowledge that inflation pressures could get stronger and that means higher yields and more headwinds for stocks.”

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