Bitcoin Climbs Back to $50K as Ether Gains Momentum
Bitcoin rose 5% on Wednesday to just above $50,000. Traders are now speculating whether the move represents a resumption of this year’s powerful bull market or simply a rebound following last week’s steep plunge to around $43,000.
The largest cryptocurrency is now up 10% so far in March; this would mark the sixth straight monthly increase, the first time that’s happened in seven years.
Bitcoin (BTC) has been trading around $50,500 as of 21:00 UTC (4 p.m. ET), gaining 6.4% over the previous 24 hours. Bitcoin’s 24-hour range: $52,636.22 to $47,332.82
Continuing a strong start to the month, bitcoin finally reclaimed its position above $50,000 as hopeful investors anticipate a revival of the uptrend from early February, where it hit an all-time high of $58,000.
Analysts have expressed hope in the recovery of the digital currency, saying the market now appears to have fully reset after last week’s come down, making a fresh rally more sustainable.
Ether Gains Momentum; Follows Bitcoin’s Trend
Ether (ETH), the second-largest cryptocurrency by market capitalization, rose along with bitcoin on Wednesday. It reached around $1,650, climbing 7% in 24 hours as of 21:00 UTC (4:00 p.m. ET).
However, despite the asset’s strong performance, shareholders of the cryptocurrency trust don’t appear optimistic.
Earlier this week, the difference between the price of Ether, as implied in prices for the Grayscale vehicle, and spot cryptocurrency prices turned negative on Tuesday after briefly turning positive.
According to data from Skew, the Grayscale ether trust had a premium of -4.62%, possibly a sign that investors are cashing out of their shares even as ether buyers accumulate via spot markets or other investment vehicles.
Additionally, the negative premium represents increased competition among providers of publicly-traded ether products.