News Flash: Crypto Markets Swing Higher as Bitcoin Climbs Above $3,700
Crypto markets turned green Monday morning, as bitcoin avoided a major breakdown that would have paved the way for a re-test of last month’s low. Although the bulls aren’t out of the woods yet, the sharp rebound offers some reassurance that further downside will be limited.
The cryptocurrency market capitalization added $5 billion in less than an hour, reaching a high near $124 billion ahead of the noon hour. Crypto markets bottomed near $116 billion on Sunday as trade volumes plummeted. Active trading has increased by over $4 billion in the last 24 hours.
Bitcoin jumped 3% to a high of $3,748.20, according to CCN’s price tracker. It had traded in the low $3,500 range earlier in the day, setting the stage for a major move lower. That’s because bitcoin has established long-term support near $3,550 and a convincing drop below that floor would have been disastrous in the near term. The BTC price has crossed below that line on several occasions stretching back to last Thursday but has recovered each time.
Bitcoin was last seen hovering right around $3,705, according to CoinMarketCap.
The top-ranked cryptocurrencies all reported gains in the last hour and were trading in positive territory compared with Sunday. Ethereum jumped 7.6% to $129.03. XRP added 3.5% to $0.3352. Bitcoin cash advanced 4.2% to $132.73.
EOS rose 6.3% to $2.46. The value of Stellar climbed 2.8% to $0.1093.
Tron was the market’s top performer, gaining 12.2% to reach $0.0244. The TRX token kick-started the rally roughly 12 hours earlier as prices broke out of a short-term bottom. More on that story can be found here: Tron Flashes Rare Green Despite Warning About BitTorrent Token.
No Immediate Catalyst
Aside from technical re-positioning, there were no fundamental reasons for the sudden reversal Monday morning. However, bitcoin’s overwhelming pull on the broader market likely impacted the sharp rise in altcoins and tokens. Alternative cryptocurrencies have traded in lockstep with bitcoin since the bear market re-emerged last year. That’s unlikely to change anytime soon, especially as crypto projects contend with a crisis of legitimacy following the 2017 ICO boom.
The debate over regulation will likely heat up over the next six weeks as investors eye a landmark decision on a highly-touted bitcoin exchange-traded fund (ETF). The U.S. Securities and Exchange Commission (SEC) will deliver its ruling on the VanEck-SolidX Bitcoin Fund on Feb. 27.
The SEC’s compliance department has identified cryptocurrency as a top priority in 2019 and has vowed to step up its monitoring efforts. This means broker-dealers, trading platforms and investment advisers will face greater scrutiny moving forward. More on this story: As Race for Bitcoin ETF Heats Up, SEC Identifies Cryptocurrency as a Top Priority in 2019.
Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock.