The cryptocurrency bull market was firing on all cylinders in trading Tuesday, with Bitcoin (BTC) rising above $57,000 for the first time in more than two years, a frustrating move for traders who had been hoping for a major pullback as an opportunity to allocate money. At the top of encryption.
While cryptocurrencies continued to rise, stocks traded in a holding pattern, as investors continued to be patient after last week's surge to new record highs for the S&P and Dow. Many are now awaiting Thursday's PCE report, one of the key inflation inputs into the Fed's interest rate setting decisions, before increasing their exposure to the market.
At the closing bell, the S&P and Nasdaq finished in the green, up 0.17% and 0.37%, respectively, while the Dow Jones fell 0.25%.
Data provided by TradingView shows that Bitcoin bulls extended Monday's rally into Tuesday trading, pushing Bitcoin to a high of $57,660 in the afternoon, its highest price since December 3, 2021. At the time of writing, it is trading Bitcoin is at $56,800, up 4.1% on the 24-hour chart.
Bitcoin/US Dollar Chart by TradingView
“There are a range of factors influencing market sentiment and rising cryptocurrency prices,” Bakhrom Sidoloev, product lead at Mercuryo, said in a note to Kitco Crypto. “In my opinion, this recent rally can be largely attributed to the upcoming halving event and the anticipation surrounding it. These events have historically been associated with large jumps in Bitcoin prices, where decreased supply creates scarcity, which then increases demand.
The halving “remains the primary bullish factor for Bitcoin, guiding the entire cryptocurrency landscape, with many players anticipating its impact on Bitcoin’s price trajectory in the coming months,” Sidoloev said.
“The S&P 500 hitting all-time highs and the positive attitude of investors flocking from traditional markets is another factor,” he added.
Regarding how long the uptrend will continue, Sidolev said that the impact of gold ETFs on the gold price provides insight into the path that the price of Bitcoin could take.
“The launch of the first gold-backed ETFs in 2004 significantly accelerated the rise in gold prices, which continues today, 20 years later,” he said. “In the same vein, Bitcoin’s continued rise indicates that a similar pattern may emerge in the cryptocurrency market.”
“Moreover, the anticipation surrounding the potential launch of a Bitcoin exchange-traded fund has sparked optimism among investors, resulting in increased demand and upward momentum in prices,” Sidoloev said. “If historical trends are any indication, these events could stimulate further growth in the price of Bitcoin and lead to sustained year-on-year growth, similar to that of gold.”
According to veteran trader Peter Brandt, the recent rise above a key resistance level suggests that Bitcoin could reach $200,000 as the bull market continues into late 2025.
Bitcoin update
With a rise above the upper boundary of the 15-month channel, the target for the current bull market cycle scheduled to end in August/September 2025 is raised from $120,000 to $200,000. $ Bitcoin
A close below last week's low would invalidate this interpretation pic.twitter.com/19ZXpAQW0v– Peter Brandt (@PeterLBrandt) February 27, 2024
Altcoins are being traded
Tuesday saw crypto traders shift from altcoins that have recently surged to tokens that show near-term promise, resulting in a mixed performance for the top 200 tokens, with the majority of projects posting gains.
Daily performance of the cryptocurrency market. Source: Coin360
Meme coins were the best performers, led by Pepe (PEPE), which rose 50.6%, followed by a 35.4% gain for FLOKI (FLOKI), and a 31.5% gain for dogwifhat (WIF). COTI (COTI) posted the largest loss, falling 17.3%, while Worldcoin (WLD) fell 12.15%, and SingularityNET (AGIX) lost 10.7%.
The total market cap of cryptocurrencies is now $1.05 trillion, with Bitcoin's dominance rate at 38%.
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