Ethereum and major altcoins are also trading in positive territory this Wednesday
Bitcoin (BTC) and Ethereum (ETH) have further recovered from the “bloodbath” earlier this week, caused by global market panic after Bank of Japan (BoJ) vice governor Shinichi Uchida stated that they will no longer raise interest rates during market instability periods.
The recovery was also driven by institutional investors’ support, who took advantage of the recent dip to buy. Japanese publicly traded company Metaplanet announced on Tuesday (6) an investment of around 8.5 billion Japanese yen (approximately $60 million) in BTC through a new stock offering.
“Once again, we are seeing companies understanding this movement of buying Bitcoin to protect their cash reserves, especially more long-standing companies that think in decades or at least four or five years,” said Andre Franco, head of research at Mercado Bitcoin (MB).
Bitcoin, which was trading below $50,000 earlier this week, is changing hands at $57,539 on Wednesday morning, up 4.20%. Meanwhile, Ether, which saw its steepest drop since 2021 on Monday (5), is up 3.1%, trading at over $2,539.
The flow into Ethereum spot ETFs also contributed to the price recovery. The nine products, which started trading last month, recorded a net inflow of $93 million yesterday, led by BlackRock’s fund, according to data from the SoSoValue platform.
On the other hand, Bitcoin spot ETFs experienced a combined net outflow of $148 million yesterday, primarily driven by Fidelity’s index fund.
Concerns
Despite the recovery, analysts are still concerned about short and medium-term prices, mainly due to the US monetary policy, the ongoing US election, and escalating tensions in the Middle East.
“Bitcoin is trying to recover, but strong resistance from the well-defined downtrend is likely to be more challenging after the recent support break,” said Markus Thielen, founder of 10x Research, in a report released last night.
“From a technical standpoint, the $56,000 to $57,000 area is expected to act as significant resistance for Bitcoin. A close above this level would be a positive sign. However, it is crucial to have firm stops for long positions ($54,000) due to prevailing downward risk indicated by incomplete technical indicators,” he added.
Check the performance of the main cryptocurrencies at 8 a.m.:
| Cryptocurrency | Price | Change in the last 24 hours |
|---|---|---|
| Bitcoin (BTC) | $57,539 | +4.20% |
| Ethereum (ETH) | $2,539 | +3.10% |
| BNB Chain (BNB) | $496 | +3.50% |
| Solana (SOL) | $153 | +10.40% |
| XRP (XRP) | $0.5177 | +3.20% |
Cryptocurrencies with the highest increases in the last 24 hours:
| Cryptocurrency | Price | Change in the last 24 hours |
|---|---|---|
| dogwifhat (WIF) | $1.76 | +27.50% |
| FLOKI (FLOKI) | $0.0001367 | +16.20% |
| Bonk (BONK) | $0.00002155 | +11.20% |
| Marinade Staked SOL (MSOL) | $185.71 | +10.70% |
| Stacks (STX) | $1.42 | +10.20% |
Cryptocurrencies with the biggest decreases in the last 24 hours:
| Cryptocurrency | Price | Change in the last 24 hours |
|---|---|---|
| Maker (MKR) | $1,905.89 | -1.10% |
| Lido DAO (LDO) | $1.11 | -0.50% |
