Tuesday, June 25, 2024

Mega Bitcoin rally helps other crypto tokens reach new highs

The impressive rally of Bitcoin, which now aims to hit $50,000 per coin, has helped other cryptocurrencies like Ethereum and Solana reach new highs. Ethereum (ETH) jumped more than 5 per cent and hit $2,382 on Friday, its highest level since May 2022.

Solana (SOL) jumped over 8 per cent to $69, also the highest since May 2022, reports CoinDesk.

Bitcoin was hovering around $43,500 on Friday, after climbing to near $45,000 earlier this week. Ether classic (ETC) increased 6 per cent, while liquid staking protocol Lido’s governance token (LDO) increased by over 11 per cent.

According to crypto analytics firm Santiment, traders are fearful that crypto markets may be in a bull trap at the moment. “While Bitcoin may have stopped its momentum for the time being, Ethereum and altcoins are blasting off once again,” it posted.

The surge in Bitcoin prices has pushed the crypto market capitalisation over $1.5 trillion for the first time since May 2022, when Terra crypto token collapse kicked-off the crypto winter. The macroeconomic environment is also supporting Bitcoin’s price rise.

“Dovish talk from some Fed officials, a weakening dollar, and relatively sturdy domestic data helped propel markets over the weekend,” Alex Thorn, head of research at digital asset investment firm Galaxy, was quoted as saying.

Bitcoin is up more than 150 per cent year-to-date, and it is one of the world’s best-performing assets on a risk-adjusted basis. “Despite the run, Bitcoin remains very constructive,” said analysts.

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