Bitcoin Rises for Second Day, XRP Reaps the Rewards #
Bitcoin posted a solid gain for the second consecutive day yesterday, marking the first time in a while that two such strong days have occurred back-to-back. Some investors are now cautiously looking up, but the sentiment has shifted dramatically, especially for holders of XRP and a few other specific coins.
Second Strong Day in a Row for BTC #
Sunday was the best day for bitcoin since October 26, with a 2.48% rise that allowed the largest cryptocurrency to start the new week on a positive note. However, that momentum initially faded.
After being worth $88,000 in the night from Sunday to Monday, the price had dropped below $86,000 by 10:30 AM. The lowest valuation was just before 4:00 PM, shortly after the U.S. stock markets opened, at $85,500.
Although selling pressure had recently come mainly from the United States, bitcoin surprisingly managed to regain some ground during these hours yesterday. In six hours, the price climbed to a peak of $89,200, meaning it rose by over 4%.
The U.S. stock market also rallied, and optimism was boosted by a social media post from Donald Trump. The U.S. president wrote that he had a “very good phone call” with his Chinese counterpart Xi Jinping. He said Xi will visit the United States and that they agreed to “stay in close touch.”
Ultimately, the day ended with a 1.71% gain, and since the low on Friday, bitcoin has risen by nearly 11%.
Analyst Matthew Hyland shows how bitcoin had been in an unsustainable inverse parabola during the recent weeks of decline. Such a movement rarely lasts long, and with the rise of the past few days, the parabola has broken. He expects a further rise towards $107,000–$117,000.
At the time of writing, the BTC price on crypto exchange OKX is $87,922. On the Dutch crypto exchange Bitvavo, the BTC price in euros is €76,358. Compared to 24 hours ago, BTC is up 0.95%.
XRP Rises 8% on Historic Day #
XRP is the big winner with an 8.28% gain over the past day. This is partly self-inflicted, as two new U.S. exchange-traded funds for Ripple’s coin were launched yesterday. Grayscale and Franklin Templeton brought their own XRP funds to market.
Other major coins are also performing very well. Ethereum is up 2.93%, Solana 4.86%, Dogecoin 3.17%, and Cardano 2.08%. Sui, the 22nd largest coin, is soaring with an 11.51% rise.
Inflation Data Ahead #
The market is mainly looking forward to the U.S. Producer Price Index (PPI) that will be published today at 14:30 (Dutch time). This inflation gauge shows what companies pay for raw materials and production and often serves as an early indicator for the prices consumers will feel later.
Lower-than-expected figures will be positively received by the market. Then the central bank will have more room to stimulate the economy with interest rate cuts. Then there is more money available that can be invested.