Cryptocurrencies rise; Bitcoin tries to recover $17,000
Cryptocurrencies rebound after the losses of the last few days. Bitcoin (BTC), the reigning cryptocurrency, has rebounded 0.4% in the last 24 hours and stands at $16,800, still far from the $17,000 reached last week. Ethereum (ETH), meanwhile, has rallied 2% and regains $1,200.
Binance´s news stands out, although this time not for a bad reason. The US subsidiary of the largest exchange on the planet has bought the assets of the bankrupt cryptocurrency lender Voyager for more than $1 billion. It should be recalled that the company, in bankruptcy following the collapse of the Three Arrows Capital fund, struck a deal with FTX's U.S. subsidiary to be bailed out for $1.4 billion just a month before Sam Bankman-Fried's firm had to file for bankruptcy.
"Binance could still be in the market to buy more distressed assets, which could also be seen as an attempt to show some strength in its health given the massive redemptions that have been occurring," stated Edward Moya, senior analyst at Oanda. Along these lines, Binance has increased its recovery fund for cryptocurrency companies announced in the wake of FTX´s debacle by another $1 billion.
Be that as it may, the truth is that the sector is still worried about the interest rate hikes of the main central banks. In contrast to the latest decisions of the monetary agencies, the Bank of Japan (BoJ) decided to maintain interest rates at -0.1% and announced that it will widen the fluctuation band of its long-term bond yields, which has had repercussions in the form of rises for the yen and for Japanese bond yields.
Although the market has welcomed this news, experts are clear: recession is still possible and is investors' biggest concern. "If stocks go down, so will cryptos," commented Matthew Dibb, chief investment officer at Astronaut Capital. Sean Farrell, vice president at FundStrat, also stressed that "the subdued beta of cryptocurrencies is consistent with the idea that cryptoassets may be less susceptible to an equity downturn driven by an earnings recession."
On the technical side, most experts agree that $20,000 is the major resistance to be beaten by Bitcoin in the coming weeks. On the downside, analysts point to $15,500 as the key resistance in the largest cryptocurrency on the market´s price.
In other market news, there have been downward movements. Ripple (XRP) falls 1% and Dogecoin (DOGE) drops 5%, quite possibly driven by the binding poll lost by Elon Musk in which he made his position as CEO of the company up to Twitter users. Cardano (ADA) falls 2%, Polygon (MATIC) drops 0.5% and Polkadot (DOT) retreats 0.6%. Meanwhile, Tron (TRX), Litecoin (LTC) and Solana (SOL) rise moderately.