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Shiba Inu, a widely popular meme crypto that’s named after a breed of dog, has soared over the past two days.
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Bitcoin
and other cryptocurrencies were rising for a second day, with analysts eyeing $50,000 as the next milestone for Bitcoin after it crossed $40,000 in recent days.
The leading digital asset was up 3% over the last 24 hours to shy of $44,000, according to data from CoinDesk. Bitcoin had been trading around $41,000 since last Friday, after surging from near $36,000. This is now the second day of meaningful gains. While it looks to have left the year-to-date low of $33,000 behind, Bitcoin remains well off November’s all-time high of $68,990, and below the $47,000 high reached on Jan. 1.
“Bitcoin believers are back,” said Edward Moya, an analyst at broker Oanda. “Frothy calls are returning, and many investors are now confidently returning back to crypto.”
Peer
Ether
was also higher, up 1% to above $3,100. The token underpinning the Ethereum blockchain network has been on an upward path since popping above $2,700 last Friday. Ether is far below its record high of $4,865, hit three months ago.
Smaller cryptos, or altcoins, including
Litecoin,
and
Ripple
also rose.
Widely popular meme tokens
Dogecoin
and
Shiba Inu
were also in the spotlight, with the former ticking up 2% as the latter soared more than 20%, building on sizable gains from Monday.
“Momentum buying appears to be returning for cryptos and Bitcoin is leading the charge,” Moya said. “Many crypto traders are looking for a strong altcoin season shortly once Bitcoin can stabilize above the $50,000 level.”
Price pressure on cryptocurrencies ratcheted up in 2022, with a selloff in mid-January coinciding with a proposal from Russia’s central bank to ban cryptocurrency mining and trading. It’s a country where both activities are relatively popular.
Yet the bigger challenge for cryptos has been an apparent correlation with other risk-sensitive investments, like high-growth stocks in the technology sector. Bitcoin and other digital assets followed tech stocks downward last month as the
Nasdaq Composite
—a proxy for U.S.-listed tech—moved into correction territory.
In theory, Bitcoin and its peers should trade independently from mainstream financial markets. However, like with equities, the prospect of rising interest rates and less liquidity as a result of central bank policy has rocked the boat.
The picture has been changing somewhat. In late January, Bitcoin began to outperform the Nasdaq, though analysts have noted that it remains sensitive to risk appetite in the broader market.
“The fundamentals have not changed at all, but the bullish buying has been steady,” noted Moya. “The true test for cryptos will be can they maintain a rally if risk aversion hits all markets.”
Write to Jack Denton at jack.denton@dowjones.com
