- Bitcoin has rallied above the $30,000 level for the first time since June 2022.
- The gains are driven by expectations the Fed could scale back its rate hikes, an analyst said.
Bitcoin rallied above the $30,000 level for the first time since June 2022 — nearing a breakout moment for the largest cryptocurrency by market capitalization.
Bitcoin rallied 6.2% in 24 hours to trade above $30,100 at 5.01 a.m. ET on Tuesday, according to CoinMarketCap. Ether, the second largest crypto by market cap, also rose over 3% in 24 hours to trade over $1,900.
Veteran trader Peter Brandt flagged the possible "breakout" on Twitter as Bitcoin was heading toward a key resistance level of $30,000.
—Peter Brandt (@PeterLBrandt) April 10, 2023
"A breakout would require consecutive weekly 'closes' above resistance and would complete a basing phase in a bullish long-term development," Katie Stockton, managing partner of Fairlead Strategies told Insider's Matthew Fox last month.
"The reason behind the rally is probably because the odds for the Fed to further scale back its rate hikes have been dramatically strengthened after the bank turmoil in early March," Tina Teng, an analyst at CMC Markets, a financial services firm, said in a video posted on Twitter Tuesday.
Teng's technical analysis of Bitcoin's chart shows prices nearing $35,000 if the upside price momentum continues.
—CMC Markets ANZ (@CMCMarketsAusNZ) April 11, 2023
The Federal Reserve hiked interest rates for the ninth straight time in March — even after the implosion of Silicon Valley Bank — in its continued drive to cool inflation. But this is intensifying worries that the economy could cool so much that it could tip into a recession. This is raising hopes that the rate hike cycle could taper off soon.
Bitcoin is up about 80% this year so far, while ether is up about 60% in the same period.
Bitcoin and ether hit all-time highs when they surged past $69,000 and $4,800, respectively, in November 2021.
April 11 2023, 5.17 a.m. ET: This story has been updated to include the latest bitcoin and ether prices.