Bitcoin surges to a 5-month high above $57,000, outperforming wider crypto sector
Bitcoinsurged to a five-month high above $57,000 Monday to outperform the broader crypto sector.
- The altcoin market is down overall, with ripple, cardano, polkadot, and dogecoin trading lower.
- Elsewhere, the dogecoin spinoff shiba inu rallied 19% Monday, gaining 265% over the past seven days.
Bitcoin surged to a five-month high on Monday, climbing back above $57,000 to outperform the broader cryptocurrency sector.
The digital currency claimed an intraday high of $57,776 before paring gains to trade up 3.48% at $57,331 as of 12:50 p.m. ET Monday. The largest cryptocurrency by market capitalization hit a record high of $65,000 in April.
Tim Frost, the CEO of the digital-wealth-management platform Yield App, couldn't point to one particular reason behind the rally. Catalysts could include the Securities and Exchange Commission's recent approval of an exchange-traded fund made up of stocks with bitcoin exposure, growing institutional adoption of the digital asset, and the daily settlement hitting $31 billion worth of transactions for the first time last week, he said.
But bitcoin could be headed for another short-term dip.
"Analysts are predicting a potential cool off, with bitcoin potentially falling to the $40,000 support level before continuing on the upwards trajectory to test the previous all-time high," Frost said in a note.
A technical analysis by Adam James, a senior analyst at the cryptocurrency exchange OKEx, showed bitcoin's four-hour ribbon of exponential moving averages was providing support. But he said the deeply negative Grayscale Bitcoin Trust premium for Grayscale's banner product may hinder the sustainability of this rally.
Also bucking the general downturn is shiba inu, which was trading 19% higher on Monday to $0.00003212. In the past seven days, the dogecoin spinoff has climbed a dizzying 265%.
The token was founded last year, with its anonymous creator dubbing it a "meme token," and explicitly mimicked dogecoin.
"Shiba inu is a ridiculous meme coin of a ridiculous meme coin that most investors and indeed average people balk at," Frost told Insider. "The price seems to be on the rise now following a huge dump on Thursday, when a lot of whales decided to offload onto the market."
- 15 OTT releases to watch this festive season starring Madhuri Dixit, Hasan Minhaj and more
- "Naya Jammu & Kashmir" celebrates a rejuvenated global sericulture industry
- Credit Suisse is in trouble, but this is not 2008 – investors remain wary of the ‘all is well’ soundbites
- Railways increased the speed of 500 mail express trains by 10-70 minutes
- Retail auto sales grow 11% in September, but still below pre-Covid levels, says FADA