Other digital assets followed suit, with smaller tokens such as Solana, Litecoin and Bitcoin Cash rallying
Bitcoin extended its rally from last week, rising above $27,000 for the first time since August. Other digital assets followed suit, with smaller tokens such as Solana, Litecoin and Bitcoin Cash rallying.
The largest digital token had ended positive on Sunday for the first week in five, and increased as much as 3.7% to $27,418 on Monday. Solana gained around 6%, Litecoin rose 6.5% and Bitcoin Cash jumped 8%.
The price increases come with the Federal Reserve expected to keep borrowing rates steady when policy makers meet this week. Higher rates tend to reduce the allure of higher risk assets such as cryptocurrencies.
“After a prolonged struggle at the psychological support of $25,000, Bitcoin managed to hold steady. Range traders will now be looking to take profits just above $30,000,” said Mati Greenspan, chief executive officer of Quantum Economics.
Some analysts are questioning how long this latest rally will last and as reported previously the level investors are watching on Bitcoin is $28,800.
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“I don’t see a clear catalyst for the move up,” said Dessislava Ianeva, senior research analyst at Kaiko. “In the current low liquidity environment, relatively low buying/selling pressure could amplify spot price movements and spur liquidations on derivatives markets.”