Bitcoin Reaches Highest Level in Over a Month as Crypto Prices Rally
Crypto prices rallied on Monday, with bitcoin reaching its highest level in more than a month. The cryptocurrency rose 3% to $27,921, trading above the $28,000 mark for most of the day, according to Coin Metrics data. On the other hand, Ether briefly traded above $1,700 before giving back its gains in the afternoon.
The catalyst for bitcoin’s surge is not immediately clear. However, there were several ether futures exchange-traded funds set to launch on Monday, which could be seen as a positive sign for the crypto industry. Investors have been eagerly awaiting the approval of a true bitcoin ETF by the U.S. Securities and Exchange Commission in the coming months.
Bitcoin has experienced a four-week consecutive rise and is now up approximately 70% for the year. However, the digital currency is still more than 50% below its all-time highs. Despite the recent rally, trading volumes for bitcoin have been relatively light, as reported by Citi strategist David Glass. He noted that volumes, including both spot and futures trading, have been trending lower since March and currently sit around 57% below 2022 averages. In addition, Glass mentioned that Bitcoin dominance, defined as its share of the total crypto market cap, has stabilized around 50% during this year’s crypto rally.
Notably, equities tied to crypto also saw gains as a result of the rally. Companies such as Riot Platforms and Marathon Digital saw their stocks jump over 7% in premarket trading.
Bitcoin’s rise above $28,000 indicates a positive sentiment surrounding the cryptocurrency market. Although the catalyst for this recent surge remains unclear, the launch of ether futures exchange-traded funds and the anticipation of a potential bitcoin ETF approval by the SEC are likely contributing factors. It will be interesting to see if bitcoin can maintain this upward momentum and continue its positive trajectory in the coming weeks.
