Bitcoin rose 5% on Wednesday to just over $ 50,000, and traders are speculating whether the move is a resumption of this year’s strong bull market or simply a setback to last week’s steep decline to around $ 43,000.
The largest cryptocurrency has risen 10% so far in March, and a gain this month is the sixth monthly rise, for the first time in seven years.
As of 21:00 UTC (16:00 ET), bitcoin exchanged just over $ 51,000 on Coinbase. The largest cryptocurrency is still better than the all-time high above $ 58,000 reached at the end of last month.
“A week is long in crypto: a print of $ 43,000 and the retracement seen last week can only have taken place 6 months ago,” said Matt Blom, head of sales and trading at the digital asset exchange firm EQUOS, written Wednesday. “If the market can be higher than $ 47,850, then continuing higher prices is likely to be the outcome.”
Field analyst Joseph Young tweeted the latest $ 50,000 breach came with signs that the market is rejuvenating, with derivative funding costs normal from last week’s increased levels, little signs of overcrowding in the futures market and data from blockchain showing that institutional investors are ready for to hold long. term.
In other words, the market now appears to have fully recovered from last week’s comedown, which could make a new rally more sustainable.
Ether (ETH), the second-largest cryptocurrency by market capitalization, rose along with bitcoin on Wednesday. It reached about $ 1,650 and climbed 7% within 24 hours from 21:00 UTC (16:00 ET).
One possible worrying sign: Despite the asset’s strong performance to start the month, Grayscale’s ether trust shareholders do not look so positive. The difference between the price of ether, as implied in the prices for the gray-scale vehicle, and the prices of cryptocurrency turned negative on Tuesday after being briefly positive earlier this week.
According to data from Skew, the Grayscale ether trust had a premium of -4.62%, possibly a sign that investors are wiping out their shares, even though ether buyers are accumulating via spot markets or other investment vehicles. (Grayscale is a unit of Digital Currency Group, owned by CoinDesk.)
Another explanation may be that the negative premium represents increased competition between suppliers of ether products in public. An application was recently filed in Canada for North America’s second ether ETF, CoinDesk reported Tuesday.
Along with ether, decentralized financing assets were in the green on Wednesday. According to Messari’s data, the sector achieved 9.5%.
Digital assets on CoinDesk 20 are up on Wednesday. Notable winners from 21:00 UTC (16:00 ET):