Bitcoin and other cryptocurrencies are showing resilience as they edged lower on Friday, remaining close to their recent peak despite a selloff earlier in the week. This pattern of dips and subsequent dip-buying suggests a positive momentum for digital assets.
The price of Bitcoin has only dropped by less than 1% in the past 24 hours, reaching $42,750. The cryptocurrency had previously reached above $43,000 but fell short of its 20-month high of $44,000, which was achieved a week ago. Although Bitcoin has rallied by more than 50% in the last two months, it continues to experience volatile swings within its overall trend. It briefly fell below $41,000 earlier this week before bouncing back.
According to Bob Ras, co-founder of the digital asset exchange Sologenic, “It’s clear that Bitcoin is in a bullish uptrend. Dips are not causing substantial pullbacks as expected after significant rallies. Instead, the dips are being bought up by what appears to be large-scale buyers. The recent long liquidation briefly shook the market, but then a consolidation occurred, and now we are seeing strong upwards momentum again.”
Traders are eagerly awaiting the potential approval of the first spot Bitcoin exchange-traded fund (ETF) by U.S. regulators. This approval could bring a new wave of investor interest in cryptocurrencies. However, it’s important to note that the macro backdrop for risk assets has also played a role in boosting crypto prices. Particularly, expectations of multiple interest rate cuts by the Federal Reserve next year have contributed to Bitcoin’s gains, alongside the Dow Jones Industrial Average and S&P 500.
In addition to Bitcoin, Ether—the second-largest cryptocurrency—dropped by 1% to $2,270. Smaller tokens or altcoins were weaker, with Cardano and Polygon both sliding by 3%. On the other hand, memecoins such as Dogecoin and Shiba Inu only experienced a 1% decline.
