Cryptocurrencies, including Bitcoin, experienced a notable uptick on Wednesday, recovering key levels as traders capitalized on a recent dip in the market. This resurgence was fueled by optimistic risk sentiment in broader financial markets, particularly as U.S. stocks continued their ascent to record highs.
In the past 24 hours, the price of Bitcoin has surged by 4%, reaching $40,300 and successfully reclaiming the psychologically significant $40,000 threshold. This comes after Bitcoin briefly fell below $39,000 earlier in the week, marking its lowest point in over a month. Despite this recovery, Bitcoin still lags behind its recent peak above $48,000, which was achieved during a trading frenzy triggered by the U.S. approval of spot Bitcoin exchange-traded funds. The approval, a long-awaited catalyst with positive implications for tokens, also introduced a “sell the news” dynamic.
The dip to $38,500 attracted buyers, coinciding with new all-time highs in leading U.S. indices and fostering a favorable risk appetite. Analyst Alex Kuptsikevich from broker FxPro notes that Bitcoin is currently testing the $40,000 level, attempting to break the downtrend by surpassing the previous day’s highs. However, Kuptsikevich suggests caution, indicating that sellers in Bitcoin may not have exhausted their potential, and a new downward momentum to $37,500 could be on the horizon.
Bitcoin’s rebound aligns with a robust performance in the U.S. stock market, with the S&P 500 poised to achieve its fourth consecutive record high. The Dow Jones Industrial Average has also reached peak levels in recent days. Cryptocurrencies often exhibit a correlation with other risk-sensitive assets, such as stocks, explaining the positive spillover from equities to tokens.
Beyond Bitcoin, Ether, the second-largest cryptocurrency, saw a 1% gain, reaching $2,250. Smaller tokens or altcoins demonstrated upward movement, with Cardano and Polygon both experiencing a 4% increase. Memecoins, including Dogecoin (up 4%) and Shiba Inu (up 3%), followed a similar trend of positive momentum in this market resurgence.
Cryptocurrency | Price (24-Hour Change) | Current Price | Recent Peak |
---|---|---|---|
Bitcoin | +4% | $40,300 | $48,000 |
Ether | +1% | $2,250 | – |
Cardano | +4% | – | – |
Polygon | +4% | – | – |
Dogecoin (Memecoin) | +4% | – | – |
Shiba Inu (Memecoin) | +3% | – | – |