Bitcoin Eyes New Highs as Ether Nears 2021 Peak
Crypto Market Surges: Bitcoin and Ether Lead the Charge
The cryptocurrency market is experiencing a broad rally, with Bitcoin (BTC) making another attempt at an all-time high and Ether (ETH) nearing its 2021 peak.
Bitcoin's Bullish Momentum
Bitcoin has surged to nearly $123,000, marking a four-week high during the U.S. session on Wednesday. Previous attempts to break above $122,000 and $123,000 were met with selling pressure, but the current momentum suggests a stronger push.
Ether's Impressive Gains
Ethereum's ether (ETH) is also showing significant strength, trading around $4,750 and closing in on its 2021 all-time high of $4,865. Ether has outperformed Bitcoin recently, gaining 4.5% in the last 24 hours compared to Bitcoin's 2.3%.
Altcoins Join the Rally
The broader crypto market rally includes significant gains in major altcoins:
- Solana (SOL): Up 5%, exceeding $200.
- Uniswap (UNI): Rallying with gains between 5%-6%.
- Hyperliquid (HYPE): Also experiencing gains between 5%-6%.
Macroeconomic Factors at Play
Broader capital markets are providing a supportive backdrop, with the S&P 500 and Nasdaq hovering near all-time highs. Joel Kruger, market strategist at LMAX Group, notes that this is "buoyed by the softer inflation signals and speculation of Fed easing."
Positive Market Conditions
10x Research highlighted the favorable conditions for risk assets in a recent report, stating, "With credit spreads tightening and loan growth turning up, the conditions for a sustained rally are falling into place." The market anticipates a potential Federal Reserve rate cut, with market participants pricing in over a 90% probability for a 25 basis point cut in the September meeting. This is fueling further investment into higher-beta risk assets.
"Bitcoin and equities are both responding early, but the market still isn’t fully pricing what’s coming," the report concludes.