Asian Market First Movers Keep Bitcoin Above $21,000 for Another Day

Bitcoin liked being above $21,000 for the fourth day in a row. A few more than a week ago, the largest cryptocurrency by market capitalization was trading at a level significantly different from where it is now, at $21,215. This represents an increase of 1.2% in the previous twenty-four hours, but a massive shift from where it was. BTC’s price has increased by about 25% in the past week.

This is because investors are more confident that inflation will decrease and the economy will land softly.

Ether was recently traded for $1,573, a 1.5% increase from the same time on Monday. In the past week, ETH has gone up by 20%. A popular meme coin called Shiba Inu recently went up more than 12%, and the token of the innovative contract platform Polkadot, called DOT, went up more than 4%.

“It’s amazing that we’re getting close to $21,500,” JJ Kinahan said on CoinDesk TV’s “First Mover” show. “It’s a little bit like the stock market right now in that people are starting to take on a little more risk.” “There has been less change there.”
Kinahan also said, “We’ll get up to about $22,500 before you start to see real resistance.”

The day after the long U.S. holiday weekend, the stock markets were mixed. The technology-heavy Nasdaq ended the day with a small gain, while the Dow Jones Industrial Average and the S&P 500 ended the day with losses. This was because investors were looking at the fourth-quarter profit drops at Goldman Sachs and Morgan Stanley, which are among the first companies to report earnings.

And Silvergate Capital (SI) gave a harsh reminder that digital asset markets are still in a severe bear market. A net loss of $1 billion was recorded for the fourth quarter by the cryptocurrency bank on Tuesday. This is in contrast to a net income of $40.6 million reported for the previous quarter and a net income of $18 million reported for the same time period in the previous year.

Arcane Research, a company that does research and analysis on cryptocurrencies, said in a note that the last week was “remarkably strong and lively” for cryptocurrencies but warned that “short-term, the momentum seems overextended.”

Arcane took note: “For the first time since March 2022, there were seven straight days of green returns last week, and the RSI momentum indicator has moved toward extreme highs. Most of the recent rise has been caused by aggressive shorting, which has led to a short squeeze. BTC’s move above $20,000 has been followed by a stabilization of open interest, which suggests that short traders have become more cautious. This could lead to short-term price stability.”

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