Bitcoin Bounces Back to 18-Month Highs. Where Crypto Prices Go Next.


Bitcoin and other cryptocurrencies rallied Thursday, bouncing back to retest 18-month highs after a correction earlier in the week. Analysts see more upside if digital assets can continue the momentum.

The price of Bitcoin has advanced 4% over the past 24 hours to $37,350, having earlier traded near $37,900, retesting levels reached last week that mark its highest level since cryptos plunged into a brutal bear market in May 2022. The largest digital asset had slumped in recent days, falling back to the $35,000 zone, but the…

Bitcoin

and other cryptocurrencies rallied Thursday, bouncing back to retest 18-month highs after a correction earlier in the week. Analysts see more upside if digital assets can continue the momentum.

The price of Bitcoin has advanced 4% over the past 24 hours to $37,350, having earlier traded near $37,900, retesting levels reached last week that mark its highest level since cryptos plunged into a brutal bear market in May 2022. The largest digital asset had slumped in recent days, falling back to the $35,000 zone, but the rally that has carried it some one-third higher over the past month—ending a prolonged period of subdued crypto trading—now appears to have resumed.

“The crypto market experienced a new growth spurt,” said Alex Kuptsikevich, an analyst at broker FxPro. “For now, it is not giving up … the chances of further gains are higher than a reversal to the downside. If we accept that Tuesday’s decline was a correction, it has opened the way to $45,000 to $46,000.”

Bitcoin remains buoyant on the back of a number of factors, including ongoing optimism that regulators will soon approve the first spot Bitcoin exchange-traded fund (ETF), which would be expected to usher in a fresh wave of investor interest. A brightening macroeconomic backdrop has also helped, lifting cryptos alongside the

Dow Jones Industrial Average

and

S&P 500

amid hopes that the Federal Reserve has finished raising interest rates.

That said, there do look to be looming risks for digital assets. Analysts at

J.P. Morgan
,

for their part, believe the crypto rally is overdone. Tailwinds from the possible spot Bitcoin ETF approval are overblown, gains expected over the next year from a change in supply are mostly priced-in, and the regulatory backdrop remains unfavorable, the analysts said in a recent note.

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Beyond Bitcoin,

Ether

—the second-largest crypto—gained 3% to $2,050. Smaller tokens or altcoins were more mixed, with

Cardano

climbing 10% but

Polygon

falling 2%. Memecoins saw big gains, with

Dogecoin

jumping 10% and

Shiba Inu

7% higher.

Write to Jack Denton at jack.denton@barrons.com



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