Bitcoin briefly rises above $24,000, extending its new year rally amid a broader gain in tech stocks
Bankruptcy filings from Celsius and Voyager have raised questions about what happens to investors’ crypto when a platform crashes.
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Bitcoin briefly touched $24,000 on Thursday, reaching a key technical level and building on the January bull run.
The move up comes a day after the Federal Reserve raised its key interest rate by a quarter of a percentage point. But Fed Chairman Jerome Powell noted that the process of reducing inflation has already begun, appeasing investors who are betting on falling inflation and making them take on more risk.
Bitcoin was last traded about 1% higher at $23,819.26, according to Coin Metrics. The cryptocurrency rallied to $24,069.00 in the early afternoon, after climbing as high as $24,249.70 on Wednesday night, its highest level since Aug. 17.
“The market considers the latest FOMC dovish, but bitcoin’s upside momentum remains precarious,” said Yuya Hasegawa, crypto market analyst at Japanese bitcoin exchange Bitbank. “Price rallied on Wednesday, but failed to close above $24k and its momentum seems to be decreasing.”
Hasegawa repeated the Fed’s warning that although inflation appears to be decelerating, it “remains high” and that the central bank will need “more evidence to confidently say inflation is getting closer”. to their 2% target.”
The jump also coincided with a broader rally in Nasdaq-led stocks as well as declines in US Treasury yields and the US Dollar Currency Index (DXY), which tend to move against the cryptocurrency.
Bitcoin has gained over 40% since the start of the year, quickly making up for losses from the 2022 disaster. However, many investors and analysts are wary that despite the current uptrend, the cryptocurrency not ready for a rocket train demonstration yet, and the price can be pulled back at least one more time before it is.
January is bitcoin’s best month since October 2021 and January’s best since 2013.
