The cryptocurrency market continues on a steady upward path. Bitcoin (BTC) soars nearly 2% in the last 24 hours and settles around $25,000, while Ethereum (ETH) rises 0.4% and is trying to maintain the recently conquered $1,700.
After a day of little activity in the United States due to the Presidents’ Day holiday, Wall Street reopens today, on Tuesday, which could help define cryptos´ direction. Or so some believe. For others, like Craig Erlam, senior markets analyst at Oanda, cryptocurrencies “are seemingly existing in a world of their own, with Bitcoin rising 2% again on Monday and eyeing the highs of the last week once more.”
“This could be a really pivotal level for Bitcoin and a break of it could generate plenty more enthusiasm. And we’ve all seen what happens when enthusiasm and euphoria exist in cryptos. The price can take off regardless of fundamentals or broader sentiment,” stated Erlam. All in all, the expert warned that this circumstance “isn’t to say we’ll necessarily see that on this occasion but the 50% recovery so far this year does suggest something may be happening.”
Neither the regulatory progress of the Securities and Exchange Commission (SEC) on Binance USD (BUSD) or Kraken, nor the disappointing macroeconomic data of recent weeks seem to undermine market optimism. Some analysts point out that the Bitcoin futures market rally is a good sign for the reigning cryptocurrency´s price.
On the other hand, some highlight that the little impact the regulatory action in the United States had will be offset by macro data and the stock market. In this regard, the correlation with the S&P 500 50-day futures remains high at 83%. According to experts, a correlation above 70% indicates that assets move in parallel, meaning that the macro scenario is likely to determine the overall trend. Investors would therefore do well to keep an eye on the release of the Federal Reserve (Fed) minutes on Wednesday, February 22.
In other market news, results are mixed. Ripple (XRP) soars 2.3% and is one of the few major tokens in positive territory. Cardano (ADA), Polygon (MATIC), Solana (SOL), Polkadot (DOT), Shiba Inu (SHIB) and Litecoin (LTC) fall between 0.5% and 2.5% on Tuesday.
