Volatility is back in the crypto space according to City analysts, as Bitcoin breaks past US$23,000.
The largest coin by market cap has gained 1.54% in the last 24 hours to US$23,056. Bitcoin also rallied beyond US$23,000 over the weekend.
“This has certainly made many believe that the worst could be behind us when it comes to the BTC price,” said Naeem Aslam, a market analyst at Avatrade. “However, traders are still sceptical about the bottom being firmly in place. This is because the BTC price needs to break above the US$30,000 price mark, which is a major resistance for now.”
Ethereum, on the other hand, was little changed, gaining 0.06% since yesterday morning to US$1,635.
“These are the highest levels seen for bitcoin and ether since August 19; this was after the majority of the damage caused by the failure of Terra and the bankruptcies of Three Arrows Capital, Celsius, and others,” Aslam added. “Nonetheless, hopes are pinned on Fed’s dovish monetary policy stance and more weakness in the dollar index."
According to Craig Erlam, a senior market analyst at Oanda, “volatility is back.”
“It’s been a very choppy week for bitcoin after the cryptocurrency surged back to life, buoyed by a much-improved risk environment,” he said. “A period of relative calm in the crypto space has allowed for such a rebound, time clearly being a great healer and all that.
“Still, as we've seen in crypto, the volatility works both ways and what we've seen this past week suggests there's plenty more to come.”
In some of the altcoins, BNB was up 4.2% to US$316.86, Polkadot surged 5.17% to US$6.63 and Avalanche gained 5.31% to US$18.58.