Bitcoin’s eight-day winning streak is the longest since the dark days of the pandemic

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(Bloomberg) – Bitcoin gives crypto enthusiasts at least a little something to cheer about during one of the industry’s darkest times: its rallying.

The world’s largest digital token has advanced for eight straight days, the longest such streak since July 2021, according to data compiled by Bloomberg. During this period, Bitcoin added more than 5% to now trade around $17,560. Other coins have also gained, with Ether up more than 10% year-to-date.

BTC needs to capitalize on this streak in the same way if its long-term downtrend has any chance of being broken anytime soon, said Frank Cappelleri, founder of CappThesis.

Meanwhile, the dollar has weakened in recent days, which is also creating a more favorable environment for crypto, according to Michael Purves, founder of Tallbacken Capital Advisors. Risk assets have rallied I think for the reason that the terminal rate is slowly but surely coming to the fore and positioning has been bearish and transitioning meaning bullish price action in the near term, a- he declared.

The footage offers a ray of hope for crypto enthusiasts who have been battered by numerous scandals in the space over the past year. Bitcoin fell 64% in 2023, its second worst performance on record. The collapse of the best-known FTX exchange in November put off many retail and institutional investors. According to researcher CryptoCompare, in December trading volume saw the biggest drop in more than a year.

Still, institutions could make a comeback once the issues plaguing the market are resolved, according to Noelle Acheson, author of the Crypto Is Macro Now newsletter.

There is no doubt that the big players will return to the market when the outlook is less gloomy, driving up transactions and also prices, she wrote in a note this week.

2023 Bloomberg LP

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