Bitcoin approached $25,078 for the first time since August amid broad gains in the cryptocurrency market, as investors shed concerns about US regulatory restrictions.
Bitcoin price rose
Bitcoin price rose The largest cryptocurrency by market capitalization increased by up to 3% on Thursday and was trading at $25,078.40 as of 6:00 pm in Singapore. Ethereum, Cardano and Polkadot also rose.
The United States cracked down on some cryptocurrency products as well as a move by a New York regulator to end the issuance of BUSD, the third-largest stablecoin cryptocurrency, at the start of the week. But since this time, the currencies have extended their gains from last year's decline, after Bitcoin rose nearly 50% since the beginning of the year.
Momentum in the cryptocurrency is likely to cause speculators to turn away from bets on the price decline, leading to an even sharper rally, said Ceci Lu, founder of Venn Link Partners, a blockchain advisory firm.
“People forget that the available bitcoins can be limited sometimes, and when the bets go down, the price jumps,” says Lu.
About $64.5 million short positions were liquidated in Bitcoin on Wednesday, the largest number of short positions in nearly a month, according to data from Coinglass. The liquidations came along with a nearly 9% jump in the cryptocurrency in yesterday's trading.
Cryptocurrency prices are surging as global stocks rally in which investors are betting that a Federal Reserve hike in interest rates can calm inflation without tipping the United States into recession.
The danger with the upbeat mood in global markets is that investors are getting too complacent about how higher interest rates should go, even though a prolonged monetary tightening could dampen demand for a variety of assets.