Cryptocurrency bulls were relieved Monday by a bounce in digital assets, especially as the sector failed to rally last week alongside publicly traded technology stocks.
Bitcoin (BTC) rose almost 7%, breaking the $31,000 mark driven by global investors as Asian and European equity markets climbed. American markets were closed for the Memorial Day holiday.
“Bitcoin broke above $30,000, but it needs to hold the $29,300 level on a retest to suggest continuation to the upside,” Marcus Sotiriou, analyst at digital asset broker GlobalBlock said in a note Monday. “Relief has been long overdue in the crypto market, as the U.S. stock market already rallied last week, after [Federal Reserve head] Jerome Powell’s speech that gave the market clarity on [the Fed's] plans to carry out a soft economic landing.”
The rally in cryptocurrencies Monday comes on the back of a bump in Asian equities amid reports major Chinese cities have started to ease coronavirus restrictions after months of strict lockdowns. Traders laid bets that reopening the economy could spark an increase in consumer spending – which could increase company revenue in the coming weeks and could indicate a bottom for stocks in the region.
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