After a drop earlier in the week, Bitcoin and other cryptocurrencies surged Thursday, retesting 18-month highs. Making everyone wonder is Bitcoin dead? Or not. Analysts expect additional gain if digital assets maintain their current trend.
Bitcoin has risen 4% in the last 24 hours to $37,350, having previously traded at $37,900, retesting levels set last week that mark the highest level since cryptos entered a harsh bear market in May 2022. The largest digital asset had fallen back around the $35,000 level in recent days, but the rise that had pushed it one-third higher during the previous month — ending a protracted period of lackluster crypto trading — now looks to have restarted.
According to Alex Kuptsikevich, an analyst at broker FxPro, the crypto market has seen a fresh upward spike.For the time being, it is not giving up; the possibilities of additional gains outnumber those of a reversal to the negative. If we consider Tuesday’s drop as a correction, that opens the door to $45,000 to $46,000.
Bitcoin is robust as a result of a variety of factors, including continued confidence that authorities will soon authorize the first spot Bitcoin exchange-traded fund (ETF), which is expected to pique investor interest. A better macroeconomic background has also helped, with cryptos rising with the Dow Jones Industrial Average and S&P 500 on expectations that the Federal Reserve will stop hiking interest rates.
However, there appear to be impending concerns for digital assets. J.P. Morgan analysts, for their part, feel the crypto rise is excessive. The analysts wrote in a recent report that tailwinds from a hypothetical spot Bitcoin ETF approval are overstated, gains projected over the next year from a shift in supply are fully priced in, and the regulatory environment remains adverse making the answer on the question: is Bitcoin dead.
Beyond Bitcoin, Ether, the second-largest cryptocurrency, increased by 3% to $2,050. Smaller tokens or altcoins performed more evenly, with Cardano rising 10% while Polygon fell 2%. Memecoins experienced significant increases, with Dogecoin rising 10% and Shiba Inu rising 7%.