Cryptos continue to rise; Bitcoin at $29,500 and Ethereum at $1,900

Cryptocurrencies continue to rise. Bitcoin (BTC) gains around 2% in the last 24 hours and tests $29,500. For its part, Ethereum (ETH) soars another 2% and exceeds $1,900.

"Bitcoin is on a roller-coaster ride following alerts that assets of bankrupt website Mt. Gox were showing signs of life and that there is a potential for the release of 142,000 bitcoins back into the market – that’s a potential $4bn selloff. Yet any selloff led by Mt. Gox fears will be temporary. What’s more decisive for Bitcoin’s trajectory is the overall risk appetite, and where the tech stocks are headed," explained Ipek Ozkardeskaya, senior analyst at Swissquote Bank.

On the other hand, the poor first-quarter U.S. GDP data has not affected the reigning cryptocurrency much. The world's top economy grew at a 1.1% pace between January and March, well below the 2% consensus estimate and 2.6% in the previous quarter.

Although the rallies following the data became more moderate, BTC has continued steadily on its upward path. According to Bob Baxley, chief technology officer at decentralized finance (DeFi) platform Maverick Protocol, this demonstrates investor confidence in large cryptocurrencies as a safe-haven security.

"Bitcoin and other crypto assets have clearly been performing as the sort of safe haven that many had hoped this technology class would become," he explained to the media outlet 'CoinDesk'.

On the other hand, the profits of the big tech companies continue to help cryptos given their close correlation with the choosy company Nasdaq. Microsoft, Alphabet (Google) and Meta published convincing results for the market in recent days. For its part, Amazon beat expectations, but its shares have fallen in the market following the release of its accounts. Next week it is Apple's turn.

Investors' focus is now on next Wednesday's Federal Reserve (Fed) interest rate decision. CME's FedWatch tool gives a more than 80% probability that the central bank will raise rates by 25 basis points and bring the policy rate to the 500-525 basis point range.

Edward Moya, senior analyst at Oanda, believes the Fed is close to ending the rate hike cycle and noted that "one, maybe two" more hikes remain. "Today’s economic data painted a picture of an economy that is slowing down, inflation is temporarily accelerating, and the labor market is softening," he explained.

In the rest of the market, there have been widespread rises. Ripple (XRP) soars 3%, while Polygon (MATIC) and Solana (SOL) gain 2% and 4%, respectively.