Cryptos Aim Higher as Traders Buy the Dip, Bitcoin Regains $51K
07 Dec 2021 · 3rd Party Analysis
- Cryptocurrencies remain on an upward trajectory for a third straight day on Tuesday
- Bitcoin price tops $51,000 in a 21% jump from its weekend lows near $42,000 per coin
What’s Trading in Crypto Markets?
The cryptocurrency market is pushing higher for a third straight day on Tuesday. Earlier today, bitcoin, the largest coin by market value, rallied nearly 4% to top $51,000 per token. Moreover, the leading crypto asset reached a session high of $51,300.
Also, the price of bitcoin has been steadily climbing since Sunday, just a day after the major market wipeout. In more detail, Saturday trading resulted in a 20% intraday loss for the orange coin. Later in the day, however, bitcoin pared half of its losses.
On Sunday, the coin started rising and has so far stabilized after gaining 21% since its weekend lows near $42,000.
Broadly, other major tokens are seeing increased volatility, too. Widely traded cryptocurrencies like Ether, Litecoin, and XRP are also on an upward trajectory this week. The Ethereum token, for example, already recovered its weekend losses and even climbed above its weekend highs.
More precisely, the Ethereum token has surged over 26% since Saturday and is currently trading near $4,360 per token.
What’s the Outlook for Crypto After the Weekend Fall?
The outlook for the cryptocurrency market remains bright as many new players join the space every day. Further, analysts point the fast-developing crypto industry is still in its early stages of development. In fact, they view the crypto asset class and its present state as the Internet in the early 2000s.
To this end, bitcoin, ether, and other coins could be likened to stocks in their very beginning when they hit the market.
In that context, many institutional investors like banks and funds are eager to join the crypto market. They even cite the inherent volatility of the asset class as an attractive reason to jump in.
Dive Deeper in the Financial World
Meanwhile, stocks and currency pairs remain jittery as traders digest Omicron concerns and other factors at play. Some of them include surging inflation, a tightening of the labor market and prospects for higher interest rates. Also, the US Federal Reserve is preparing to withdraw its vast monetary support in early 2022.
Traditional investors, like those on Wall Street, shrugged off all these uncertainties on Monday as stocks rallied.
This said, major indexes on both sides of the Atlantic enjoyed a strong day in the green. On the one hand, European bourses gained 1% or more on the day. On the other hand, US equities rallied with the Dow Jones gaining as much as 646 points, or 1.87%. In addition, the S&P500 and the Nasdaq Composite advanced 1.2%, and 0.9%, respectively.
What to Expect in the Markets?
Looking ahead into the week, traders will be watching Japan’s GDP data slated for publishing today. On Wednesday, Canada’s central bank will announce its interest rate decision.
Thursday brings us the initial jobless claims for the US labor market. And Friday is reserved for the US inflation rate, the consumer price index for November. A month ago, in October, inflation surged 6.2% from a year ago. The jump was the highest annual increase since November 1990.