The U.S. cryptocurrency market started off slow, but things quickly turned around with the advent of Bitcoin. It regains the $94,000 level.
The price of the largest cryptocurrency, which was hovering above $90,000 earlier in the day, surged to $94,000 minutes later at 16:00 UTC, up more than $3,000 in less than an hour and up 4% in the past 24 hours.
Ethereum’s Ethereum rose 5% over the same period, while the native token and linkk Climb even higher.
Prices fell while silver climbed to new record highs above $60 an ounce.
Cryptocurrency stocks followed Bitcoin higher, although the broader stock market remained flat. Digital asset investment firm Galaxy (GLXY) and Bitcoin miner CleanSpark (CLSK) rose more than 10%, while Coinbase (COIN), Strategy (MSTR) and BitMine (BMNR) gained 4%-6%.
Although there aren’t any obvious catalysts to push Bitcoin higher quickly, it has been selling off mostly as U.S. markets opened for weeks. Today’s change in patterns may indicate seller exhaustion.
Vetle Lunde, chief analyst at K33 Research, pointed out that the cryptocurrency derivatives market is in a “defense-in-depth” position, with investors worried about further weakness, and crowded positions may lead to a rapid rebound.
Further signs of bear market capitulation emerged on Tuesday, with Standard Chartered bull Geoff Kendrick slashing his forecast for Bitcoin prices in the coming years.
The Coinbase Bitcoin Premium, which shows the BTC spot spread on US-centric exchange Coinbase and offshore exchange Binance, has also turned positive over the past few days, indicating that US investor demand is making a comeback.
The Fed is expected to cut its benchmark interest rate by 25 basis points at its two-day meeting ending on Wednesday. Although market participants widely expect rate cuts, the resilience of the U.S. economy and loose financial conditions may help boost the market’s risk appetite.
