The price of bitcoin today rises above $20,000 again; Celsius removes uncertainty

Cryptocurrencies rose for the second day as US tech stocks also posted a lead and investors got more clarity on the bankruptcy of a major digital asset lender.

Cryptocurrencies rose for the second day as US tech stocks also posted a lead and investors got more clarity on the bankruptcy of a major digital asset lender.

Bitcoin, the largest digital coin by market value, rose 5.6% on Thursday to trade above the closely watched $20,000 level again. Ether, the second largest, surged 12% at one point to top $1,200. The rallies were widespread, with an index of the 100 most followed coins up around 6%, and came as the market digested the bankruptcy filing of Celsius Network Ltd., which eliminated a major surplus.

Meanwhile, the Nasdaq 100 index of tech stocks – which Bitcoin and other cryptos tend to mimic day-to-day – also rose as comments from Federal Reserve officials provided relief to investors concerned about the pace. aggressive central bank rates. increases likely to plunge the US economy into a recession. Fed Governor Christopher Waller and Fed Bank of St. Louis President James Bullard both said they would support a 75 basis point hike in July after high inflation, as some players market expected the central bank to institute a base 100. point increase.

“Now is the time for medium to long-term investors (1 year and longer) to consider a more aggressive allocation to Bitcoin,” Sean Farrell, head of digital asset strategy at FSInsight, wrote in a note.

Crypto investors have been hit all year as the Fed raises interest rates to fight inflation. Trading volumes tumbled amid the terrible first half as spot and derivatives volumes declined on major exchanges.

But much of the news about the aggressiveness of the Fed has already been priced in, according to StoneX’s Youwei Yang.

“Interest rate hikes are priced in, that’s why it’s holding up here,” Yang said in an interview.