Bitcoin Retreats After Reaching $62,000

CoinDesk 20 Index: 1,961 +3.6% Bitcoin (BTC): $60,680 +5.8% Ether (ETC): $2,636 +7.7% S&P 500: 5,319.31 +2.3% Gold: $2,468 +1.9% Nikkei 225: 35,025 +0.56%

Bitcoin (BTC) briefly rose above $62,000 but has since retreated. The recovery has reminded some bitcoin bulls that their year-end target is $100,000. US markets got a good boost yesterday, with the S&P 500 posting its best day since November 2022 and the tech-heavy Nasdaq 100 rising 3.1%. This reversed losses from Monday’s rout, which saw major losses in stock indices and cryptocurrencies. BTC’s rally revived gains in major tokens. Ether (ETH) and toncoin (TON) rose 10%, while Solana’s SOL and Cardano’s ADA rose 5%. XRP fell slightly after yesterday’s 17% rally, likely driven by profit-taking.

Some market observers attributed the gains to positive stock market sentiment and BTC mirroring past market cycles. Michael Terpin, founder of Transform Ventures, said: “Given that the Bank of Japan has indicated that it will not raise interest rates any further and Jump Trading is running out of assets to sell, I don’t think the price will fall below $50,000. Regardless of the next 60 days, the bull market will post solid gains in October and November. If Trump wins, the flood of new buyers could push the price of bitcoin above $100,000.” Terpin added that there have been pullbacks in the six months since the halving and that the fifth bitcoin cycle is progressing in a similar manner.

Bitcoin miner Ionic Digital, which acquired the mining assets of bankrupt crypto lender Celsius, has postponed its plans to go public after losing its CEO and controller. According to a statement yesterday, former CEO Matt Prusak informed the company in July that he would no longer remain with the company after his employment ended on August 14. Ionic has begun a search for a new CEO and has appointed recently hired CFO John Penver as interim boss. Penver was hired in July to spearhead the company’s IPO plan. However, Ionic said it still plans to go through with the IPO despite the CEO change and is “confident” that Penver can lead the company to that goal.

The chart shows the short-term and long-term trends of Bitcoin, measuring the price difference between call and put options. The seven-day and one-month slopes are below zero. The demand for protected put options appears to be continuing after Thursday’s 12% price increase. The chart suggests investors remain fearful of a price drop. Source: Amberdata