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After a late-day surge, Bitcoin reaches a two-month high

After a late-day surge, Bitcoin reaches a two-month high

Bitcoin has climbed more than 15% in the last week, reaching its highest level since mid-May.

Cryptocurrencies surged late Friday after spending most of the day in the negative zone. However, bitcoin reached its highest level in mid-May. At the time of writing, Bitcoin was trading at $41,000, up more than 15% last week. After a steep drop in May and two months of consolidation above the $30,000 support level, bullish optimism has returned.

Some experts are hopeful, predicting that buyers will continue to be active above the 50-day moving average. The moving average is now over $34,000.

10-year Treasury yield closed 1.236%, compared with 1.274% on Thursday

“We have been talking about the market having lower liquidity during the summer for a few weeks now, and we think this helps explain the sharp price action we saw that triggered the short squeeze of nearly $1 billion in futures liquidations,” wrote David Grider, a FundStrat strategist, in a Thursday newsletter.

Given the recent sell-off in Asian stocks, Grider believes bitcoin’s rise reflects a flight to safety by Chinese investors trying to “get out at any cost.” Grider stated, “Bitcoin could have been trading as a proxy tool for investors looking for a hedge.”

The next Fed rate hike cycle might be brief.

The Fed’s Involvement

The Federal Reserve’s Chairman, Jerome Powell, told investors this week that the bank is evaluating when to begin winding down its monthly bond-buying programme of $120 billion. However, Wall Street experts are already speculating what will happen next.

According to Bank of America, it may take a long time to raise interest rates to previously deemed conventional levels. That means monetary policy might remain slack for years. Even after the Fed ceases actively creating money to fund Treasury and mortgage bond purchases.

Many investors regard bitcoin as a hedge against inflation and dollar debasement, resulting from easy-money policies, which could be bullish for bitcoin.

Levels of ether resistance

Ether, the world’s second-largest cryptocurrency, comes up against resistance at $2,500, represented by the 100-day moving average. It has gained around 10% in the last week and has climbed about 30% since maintaining support at $1,720 on July 20. $2,000 can be the lower support, which could help to keep a downturn in check.

Ether is stabilising concerning bitcoin, and traders are looking for a breakthrough. The initial support level for the ETH/BTC ratio is 0.054, which must hold for ETH’s relative rise to continue.

Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Crypto is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Crypto market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.