Bitcoin’s giving crypto enthusiasts at least a smidgen of something to be happy about during one of the industry’s darkest periods: it’s rallying.
The world’s largest digital token has advanced for eight straight days, the longest such streak since July 2021, according to data compiled by Bloomberg. Over that span, Bitcoin has added more than 5% to now trade around $17,560. Other coins have also gained, with Ether advancing more than 10% since the start of the year.
“BTC needs to leverage this streak in a similar manner if its long-term downtrend has a chance of being broken any time soon,” said Frank Cappelleri, founder of CappThesis.
Meanwhile, the dollar has weakened in recent days, which creates a more favorable environment for crypto as well, according to Michael Purves, founder of Tallbacken Capital Advisors. “Risk assets have been rallying I think for the reason that terminal rate is coming slowly but surely into the foreground and positioning has been bearish and transitioning which means bullish near-term price action,” he said.
The streak offers a sliver of hope for crypto enthusiasts who have been battered by numerous scandals in the space over the past year. Bitcoin fell 64% in 2023, its second-worst performance on record. The crumbling of the most well-known exchange FTX in November has pushed many retail and institutional investors away. In December, trading volume declined by the largest amount in over a year, according to researcher CryptoCompare.
Still, institutions may make a comeback once the issues overhanging the market clear up, according to Noelle Acheson, author of the “Crypto Is Macro Now” newsletter.
“There is little doubt that large players will come back into the market when the outlook is less murky, pushing up transactions and also price,” she wrote in a note this week. –BLOOMBERG