Cryptocurrencies were higher on Monday after recovering from a sharp drop in the previous week.<\/p>\n
Bitcoin rose 1.5% to $19,555.00, according to Coin Metrics, while ether traded 2.4% higher at $1,328.34.<\/p>\n
Prices have held steady since rebounding from a big drop that followed the release of the latest reading on the consumer price index, a key inflation gauge. YuyaHasegawa, crypto market analyst at Japanese crypto exchangeBitbank, said the dip wasn't deep enough to induce panic, however.<\/p>\n
\"It had been another tough week for the stock market until the CPI, so Thursday's rebound will likely trigger unwinding of the recent risk off sentiment, which could have a positive effect on the price of bitcoin,\" he said. \"If the price recovers the $20,000 psychological level with a substantial trading volume in the next few days, bitcoin could test $23,000 next week.\"<\/p>\n
Despite a recent divergence in volatility, activity in bitcoin and ether trading remain closely tied to that of risk assets more broadly. Cryptocurrencies rose Monday along with the major stock indexes.<\/p>\n
While October is typically a strong month for crypto trading, crypto has never been in such a strongly macro driven bear market and it remains to be seen how prices will fare by the end of the month.<\/p>\n
\"Hovering around yearly lows in trade volumes, bitcoin and ether are crying out for the next crypto-specific catalyst that will kickstart another bull run and a decoupling from equities,\" Conor Ryder, an analyst at Kaiko, told CNBC. \"The Merge proved yet again that macro is king and we saw that last week with a volatile reaction to CPI.\"<\/p>\n
Bitcoin climbed as high as about $19,900 in its big rebound last week. Ryder agreed that a substantial break above $20,000 could usher in a new level higher.<\/p>\n
\"Crypto markets have staged a respectable recovery since the initial reaction to the inflation reading and investors are now eyeing up the psychologically important $20,000 level for bitcoin, which should result in a climb higher if breached,\" he said.<\/p>\n
However, \"it looks as if crypto and stocks will move in tandem for the rest of the year, both likely tracking sideways until there is a hint that the Fed will start to reverse the recent regime of monetary tightening,\" he added.<\/p>\n
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Bitcoin is higher to start the week but continues holding sideways pattern - CNBC<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Cryptocurrencies were higher on Monday after recovering from a sharp drop in the previous week. Bitcoin rose 1.5% to $19,555.00, according to Coin Metrics, while ether traded 2.4% higher at $1,328.34. Prices have held steady since rebounding from a big drop that followed the release of the latest reading on the consumer price index, a key inflation gauge. Continue reading