(Kitco News) Bitcoin has recovered above $44,000 and Ethereum is comfortably above $3,000 as sentiment around the crypto markets “dramatically” improves, according to analysts.
The crypto market began the week with a strong comeback, with Bitcoin rallying more than 6% and Ethereum gaining more than 5% in the last 24 hours.
At the time of writing, the world’s largest cryptocurrency was trading at $44,190.54 after rallying $7,000 since Friday. And Ethereum was at $3,157.36, after a nearly $400 rally over the past three days.
Crypto comeback has been connected to gains on Wall Street after stocks rallied last week on surprisingly strong jobs data out of the U.S. Investors digested positive news of the U.S. economy adding 467,000 jobs in January.
“Many on Wall Street were expecting a negative number. Instead, we saw robust hiring, higher wages, and more Americans returned to the workforce,” said OANDA senior market analyst Edward Moya.
And even though strong U.S. jobs numbers could mean a more hawkish Federal Reserve in March, market participants still admired the labor market’s strength, said GlobalBlock analyst Marcus Sotiriou.
“This positive reaction ignited a bounce for the crypto markets too, as Bitcoin managed to overcome the downtrend dating back to the all-time-high – $270 million of short positions were liquidated leading to a bit of a ‘short squeeze’,” Sotiriou noted. “Sentiment around the crypto market has dramatically improved over the weekend as Bitcoin has also broken out of a downtrend on the RSI dating back to October – Bitcoin broke out of two similar downtrends on the RSI within the past year, which both resulted in incredible rallies, hence potentially foreshadowing a Bitcoin rally to the upside.”
Bitcoin’s solid performance on Monday follows Friday’s 11% rally, the biggest single-day gain for the cryptocurrency since mid-June.
In a positive crypto move, U.S. Senator Ted Cruz bought bitcoin during the recent selloff. According to a financial disclosure, a purchase of between $15,001 to $50,000 worth of the popular cryptocurrency was made on January 25.
“Senator Ted Cruz declared through a periodic transaction report on Friday that he bought Bitcoin, as he said, ‘cryptocurrency and bitcoin mining provide enormous opportunities’. However, Cruz also warned about the possibility of Congress’ screwing this all up’, as he is worried that they do not understand what Bitcoin is but are trying to regulate it anyway,” said Sotiriou. “U.S. regulation is undoubtedly Bitcoin’s biggest risk, which we will hopefully gain more clarity on soon with a report from the Biden Administration on the regulation of Bitcoin, potentially getting published this month.”
In other crypto-related news, major players in the digital asset space, including Coinbase, Circle, Anchorage Digital and Huobi Global, are forming a new coalition intending to weed out market manipulation.
The Crypto Market Integrity Coalition will work to “harmonize financial integrity standards,” said Circle’s chief strategy officer and head of global policy Dante Disparte. “Integrity is paramount to the progress and ability of our industry to continue innovating and building an infrastructure that delivers on the promise of access to financial resources for all.”
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