By Frances Yue
Bitcoin rallied 9.5% over the past 24 hours, reaching the highest level in two weeks, as major stock indexes climbed.
The cryptocurrency traded at as high as $21,239, the loftiest level since Aug. 26, according to CoinDesk data. The Dow Jones Industrial Average gained 0.9% Friday to $32,059, and the Nasdaq Composite added 1.7%.
Traders are showing some optimism as inflation expectations have fallen ahead of next week’s U.S. consumer-price index report for August.
Still, “too much optimism could be dangerous,” considering a slew of bearish speeches of the Federal Reserve officials earlier this month, said Yuya Hasegawa, crypto market analyst at BitBank.
The rise in bitcoin is mostly driven by the futures market, according to Maarten Regterschot, contributing analyst at CryptoQuant. The amount of bitcoin transferred from all exchanges to derivative exchanges has recently seen a spike, Regterschot noted.
From the technical perspective, bitcoin’s overnight rally has left long-term support intact at around $19,500, Katie Stockton, founder and managing partner at Fairlead Strategies, wrote in a Friday note.
“Our short-term gauges have improved, supporting a greater oversold bounce, but we would not be adding counter-trend exposure,” Stockton wrote.
-Frances Yue
(END) Dow Jones Newswires
09-09-22 1129ET
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