Earlier this week, bitcoin briefly rose above $28,000 then cut some of its gains
Bitcoin gained Wednesday, adding 1.3% over the past 24 hours as headwinds in traditional markets eased and crypto markets cooled following Monday’s strong rally.
The biggest crypto currency in terms of market capitalization was trading at nearly $27,700 during U.S. afternoon hours. Earlier this week, bitcoin briefly rose above $28,000 then cut some of its gains.
Crypto services provider Matrixport’s analysts noted Wednesday that bitcoin broke out from its downward trend beginning in the summer and turned the $27,000 level into support.
The report added bitcoin’s price could be headed toward $30,000. Nevertheless, the initial surge on Monday lacked a considerable follow-through, as bitcoin trading volume declined to $11 billion from $19 billion.
Enigma Securities, an institutional digital asset liquidity and advisory company, predicted Wednesday in a report that low volatility on crypto markets will prevail for the next months.
Markets will probably consolidate and move sideways in October, extending the window for accumulation for long-term investors, Vetle Lunde, senior analyst at K33 Research, stated in a market report.
Traditional markets cooled after a tumultuous Tuesday session as fresh jobs data indicated a cooling U.S. labour market.
The ADP reported earlier today that the U.S. economy added 89,000 jobs in September, considerably less than the 153,000 analysts anticipated and August’s 180,000.
Kathy Jones, chief fixed income strategist at Charles Schwab, observed in an X (formerly Twitter) post that this was the smallest increase in private sector jobs since 2020.
Ether price underperformed and slipped 0.7% as market participants digested the disappointing first days of the first futures-based ETFs in the U.S. K33 Research advised investors to rotate into bitcoin, citing the lack of medium-term catalysts for ether.
Solana’s native token SOL also cut its gains from earlier this week, dropping 2.3% during the past 24 hours. The token is still up over 20% in a week.
Layer 1 blockchain Avalanche’s AVAX was a top performer among top crypto currencies, soaring 7%. XRP also rallied more than 3% earlier in the day as Ripple’s Asian arm secured a license in Singapore and a favourable court ruling.