Cryptos bounce back after weekend selloff

  • Bitcoin prices rise to highest levels since late 2021
  • Cryptos bounce back after weekend selloff
  • U.S. markets closed for Presidents Day, attention shifts to cryptos
  • Bitcoin up 1% in the past 24 hours, above $52,300
  • Bitcoin’s recent peak marks highest levels since late 2021
  • Multiple forces contribute to Bitcoin’s rise
  • Halving and improved investor sentiment support prices
  • Ether gains 3%, smaller tokens show mixed performance

Bitcoin prices are sitting at their highest levels since late 2021 on the back of a recent rally. With U.S. markets closed for Presidents Day, cryptos could get more attention from retail investors with a trading itch. The price of Bitcoin rose 1% over the past 24 hours to above $52,300, rebounding after the largest digital asset dropped below $51,000 in a short-lived selloff over the weekend. Bitcoin remains up by more than 25% in the past month, with its recent peak—around $52,800—marking the highest levels since late 2021 as cryptos have marched upward since last summer. Multiple forces have helped push Bitcoin higher, including the U.S. approval last month of spot Bitcoin exchange-traded funds (ETFs), which crypto bulls hope will usher in a fresh wave of investor interest in digital assets. Jubilation in the stock market—where the Dow Jones Industrial Average and S&P 500 remain near all-time highs—has also helped, as investor sentiment for risk more broadly has improved. Bitcoin’s so-called halving looms in the coming months as another support for prices, as the change to the token’s programmatic monetary policy is set to cut issuance and pressure supply. More immediately, cryptos could see an uptick in attention on Monday. While U.S. markets are closed for Presidents Day, tokens continue to trade 24/7, and could attract a spurt of attention from retail investors in particular if they feel the urge to trade. Beyond Bitcoin, Ether—the second-largest crypto—gained 3% to above $2,900. Smaller tokens or altcoins were more mixed, with Cardano down 1% but Polygon popping 7% higher. Memecoins were in the green, with Dogecoin advancing 3% and Shiba Inu 1% higher.

Factuality Level: 3
Factuality Justification: The article provides a factual overview of the recent rise in Bitcoin prices, mentioning key factors contributing to the increase and providing quotes from analysts. However, it lacks in-depth analysis and may oversimplify the reasons behind the price movements. The article also includes some unnecessary details and repetitions, such as mentioning the price of Bitcoin multiple times within a short span.
Noise Level: 3
Noise Justification: The article provides relevant information about the recent rally in Bitcoin prices, including factors contributing to the increase and potential future trends. It stays on topic and supports its claims with data and examples. However, it lacks in-depth analysis, accountability of powerful people, or exploration of consequences, which prevents it from receiving a higher rating.
Financial Relevance: Yes
Financial Markets Impacted: The article discusses the rise in Bitcoin and other cryptocurrencies, which can impact the cryptocurrency market and potentially attract more attention from retail investors.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article primarily focuses on the recent rally in Bitcoin and other cryptocurrencies, without mentioning any extreme events or significant impacts beyond market movements.
Key People: Alex Kuptsikevich (analyst at broker FxPro)

Reported publicly: www.marketwatch.com