Bitcoin, Ether Recover for a 4th Day as Crypto Markets Bounce Back

08 Dec 2021 · 3rd Party Analysis

Bitcoin, Ether Recover for a 4th Day as Crypto Markets Bounce Back

WRITTEN BY ThorFX

In Summary:

  • Bitcoin, Ether gain on Tuesday and remain well-bid early Wednesday
  • The price of bitcoin tried to crack $52,000 but stayed below the milestone Tuesday

What’s Trading in the Crypto Market?

Bitcoin, Ether, and the wider cryptocurrency market are logging solid gains this week after a weekend rout wiped out billions. On this note, the price of bitcoin is now trading near $50,500 per token, relatively flat on the day.

Still, the original cryptocurrency has advanced about 20% from its Saturday low of $42,000. Moreover, the price of bitcoin is on pace to log its fourth straight day of gains on Wednesday. It appears that the market sentiment has shifted to positive as major tokens are all in the green this week.

This said, the Ethereum network’s coin, Ether, is also pushing higher early Wednesday. The price of Ether has already recovered its weekend losses and is now trading near $4,360 per coin. In more detail, Ether lost about 18% on Saturday.

From Sunday onwards, however, the crypto asset’s price has been in an aggressive climb, erasing all losses and gaining further. In that context, the second-biggest token is up over 25% from its weekend bottom. Still, market participants will need more buying momentum to regain ETH’s all-time high of $4,860.

Dive Deeper in the Financial World

Stocks on both sides of the Atlantic rallied on Tuesday and remain in the green early on Wednesday. European equities kickstarted Tuesday’s trading session with solid gains across the board. US stocks followed with their own strong performance.

On that front, the S&P500 and the Nasdaq Composite posted their best day since March. The broad-based S&P500 added 2%, while the tech-heavy Nasdaq Composite added 3% on the day. Additionally, the Dow Jones Industrial Average climbed 1.4%.

The stellar rally in equities was underpinned by hopes the new Covid-19 variant will not lead to lockdowns or restrictions. While vaccine makers are still assessing the impact of Omicron, initial data shows the virus is less likely to have severe effect on health.

With this in mind, global equities were quick to return on their upward trajectory. Also, traders are keen to enter the market on Wednesday. US futures today point to a higher open after the bell in New York.

What to Expect in the Markets?

Currency pairs today could experience increased swings, especially the Canadian dollar, due to the Bank of Canada’s rate decision. To this end, the central bank of Canada is scheduled to have a press conference today and decide if it should raise the interest rate.

The bank indicated in October it intended to do its first post-pandemic interest rate increase as early as April 2022. Now, however, with the appearance of the Omicron strain, it is questionable whether policymakers will maintain the ultra-expansionary monetary policy.

It’s important to highlight that the decision could affect the movement of the Canadian dollar, particularly the USD/CAD pair. In that context, traders will be looking for opportunities to open positions in the forex market.

Economic News Today (EST time)

The Bank of Canada announces its interest rate decision on Wednesday at 10:00 am. This would be the final meeting for this year between Canadian central bankers.

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