Bitcoin (BTC-USD) and ethereum (ETH-USD) saw an uptick in prices on Monday, mirroring the trend observed in major crypto firms, as market optimism begins to re-emerge following a prolonged period of aggressive selling.
The price of Bitcoin settled around $87,400, marking a 3.2% increase from the previous trading day. Meanwhile, Ethereum advanced 3.7%, trading close to the $2,080 level.
“Bitcoin reached its highest price in over two weeks during early trading,” stated David Morrison, senior market analyst at Trade Nation. “From a chart perspective, it appears that Bitcoin has successfully consolidated and established a base for potential upward movement.”
He further remarked: “The daily MACD remains in the negative zone but shows signs of potential upward momentum. Ethereum is following a similar trend, having climbed back above $2,000. However, the upcoming resistance level around $2,200 will be a crucial test.”
Despite the recent gains, Bitcoin’s price has decreased by over 4% month-over-month, and Ethereum has experienced a 17.2% decline.
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“There isn’t a clear catalyst for an immediate parabolic rally; however, the risk-reward scenario is shifting as selling pressure subsides — a factor that can easily be overlooked without diligent observation of daily market developments,” noted Markus Thielen, founder of 10x Research.
“Bitcoin ETF inflows resumed last week following a $10 billion reduction in open interest for BTC CME futures since the December FOMC meeting. With funding rates close to zero, these inflows likely represent long-term capital, which tends to be more stable.”
The rising values of cryptocurrencies also positively impacted larger publicly-listed crypto companies. Coinbase (COIN) is set to open 4.2% higher later on Monday, although it remains down by nearly 20% for the month.
Microstrategy (MSTR), now rebranded as Strategy, was trading 4.9% higher in premarket, having more than doubled its market cap over the last six months.
These movements come after a turbulent market that has been particularly sensitive to political developments in the US.
As of 14:28:00 UTC. Market open.
Cryptocurrencies and crypto stocks initially benefited from the election of US president Donald Trump, but uncertainty has since crept in regarding the economy and some of his tariff-related decisions. The crypto market has fallen alongside the tech-heavy Nasdaq (^IXIC), which has dropped 8.9% month-over-month, reflecting a risk-averse sentiment.
During the election cycle, Trump was perceived as a pro-crypto candidate, and since taking office, he has paved the way for a more lenient regulatory approach by agencies like the Securities and Exchange Commission.
