Bitcoin Rises. What Could Trigger a New Crypto Rally.

1715447662 social


Bitcoin and other cryptocurrencies were gaining on Friday but a shift in monetary policy is probably what’s needed to sustain the rally.

Bitcoin

was up 3.6% over the last 24 hours to $63,015. The largest cryptocurrency hit a record high near $74,000 in mid-March amid a surge of interest from new spot Bitcoin exchange-traded funds (ETFs) but its price has dropped since then. 

“We’re seeing miners selling excess Bitcoin right now on the open market to help smooth out their earnings, which, in combination with a pause in global liquidity growth, is weighing on prices,” said Rennick Palley, founding partner at crypto venture-capital firm Stratos. 

Some of the challenges facing Bitcoin miners were on show when

Marathon Digital

reported its first-quarter earnings late on Thursday. The company said it had faced equipment malfunctions and weather disruption. It sold 26% of the bitcoin it produced during the first quarter, putting the proceeds toward operating expenses.

However, that doesn’t mean that miners and other holders of cryptocurrency haven’t benefited from Bitcoin’s surge this year so far.

Marathon Digital

disclosed a $488.8 million quarterly gain on digital assets, compared with $137.4 million during the same period a year before. Marathon Digital stock was up 0.8% in premarket trading on Friday.  

Advertisement – Scroll to Continue

“I think it’s highly likely that we see ourselves in a much more accommodative liquidity stance from the Fed in the next few months. And as a result, Bitcoin will continue to do well,” said Stratos’s Palley. 

Beyond Bitcoin,

Ether

—the second-largest crypto—was up 1.9% to $3,029. Smaller cryptos or altcoins were also rising, with

Cardano

up 3.3% and

Polygon

gaining 3.6%.

Dogecoin

rose 4.4%.

Write to Adam Clark at adam.clark@barrons.com



This article was originally published by a www.barrons.com

Read it HERE

Share

Similar Posts

Leave a Reply

Your email address will not be published. Required fields are marked *