- BTC is trading at $43,000, and ETH is up more than 10% in the last 24 hours. This is a strong showing for the cryptocurrency markets, which have been hit hard by the sell-off in bitcoin futures on Cboe last week. However, analysts say that the rally in ETH is mainly due to speculation, rather than a fundamental shift in the price of the coin. For now, BTC is trading above its 200-day moving average and its 50-day moving average, which could lead to further gains.
- Both cryptocurrencies have been on a tear recently, with Bitcoin posting its best two-day percentage gain since January, and Ethereum posting its best two-day percentage gain since November.
This move comes after Goldman Sachs announced it was planning to launch a cryptocurrency trading desk. The news sent Bitcoin and Ethereum higher today.
But Is This Move Sustainable?
- The price of bitcoin and other cryptocurrencies rose in the wake of a report that the U.S. Securities and Exchange Commission was delaying a decision on whether to approve a bitcoin ETF. Bitcoin is up more than 12% at the time of this writing, while Ethereum is up more than 10% on the day. INVERSE, however, is sceptical of these rallies.
- The news that the Securities and Exchange Commission is working on a crypto ETF is positive for the space, but it’s not yet clear whether or not the S&P 500 will be the wrapper or the ETF will be the coin. Either way, the news is a positive sign for the long-term health of the cryptocurrency market.
Summary And CTA
Today, that same Bitcoin is worth nearly four times as much. This rapid ascent has left many investors with a false sense of security, which is what usually precedes a major correction. And while it’s difficult to predict the future trajectory of Bitcoin and other cryptocurrencies, one thing is clear: the rally has yet to run its course.