Cryptocurrency Prices Rise as Bitcoin Climbs Above $27,000
Cryptocurrency prices experienced a broad increase on Monday, with bitcoin surpassing $27,000 for the first time this month. Bitcoin itself was slightly higher, trading at $1,635.90. The reason for this surge is not entirely clear, but there was a notable spike in trading volume during the opening hours of the Asian market.
Dessislava Aubert, a senior research analyst at crypto data provider Kaiko, suggested that in the current low liquidity environment, even small buying and selling pressures can significantly impact spot price movements and trigger liquidations on derivatives markets.
Bitcoin’s rise of approximately 4% in September is accompanied by a surge in trading volume. This follows a report by Japan’s Nikkei stating that the Japanese government plans to allow startups to sell digital tokens to venture capital funds alongside traditional assets like shares and stock options.
Aubert expects volatility this week due to upcoming central bank meetings. The stock market has been rising ahead of the Federal Reserve’s two-day policy meeting, with traders assigning a 99% chance that interest rates will remain unchanged and only a 31% probability of a hike in November.
Despite bearish sentiment among investors, bitcoin has achieved back-to-back weekly gains for the first time since May. However, concerns have arisen as its 50-day moving average began declining in August and recently crossed below its 200-day moving average. The monthly gain for bitcoin now stands at 4%.
Hot Take: Bitcoin Surpasses $27,000 Mark, But Concerns Linger
The cryptocurrency market witnessed a surge as bitcoin broke above the $27,000 threshold. While the exact cause for this rise remains unclear, the spike in trading volume during Asian market hours suggests that even small buying and selling pressures can greatly influence price movements in the current low liquidity environment.
Additionally, news of Japan allowing startups to sell digital tokens to venture capital funds added to the positive sentiment. However, concerns about potential volatility leading up to central bank meetings and the crossing of bitcoin’s moving averages have raised doubts about long-term momentum.
Despite these uncertainties, bitcoin has managed to achieve consecutive weekly gains after months of bearish sentiment. Its monthly gain currently stands at 4%, indicating continued interest in the cryptocurrency.
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