Bitcoin Reaches $61K as Investors Remain Cautious

Bitcoin (BTC) led the gains among major tokens by climbing above $61,000 earlier in the day, reversing losses from a steep price crash earlier this month.

According to CoinGecko data, bitcoin gained over 3%, while ether (ETH), Solana’s SOL token, Cardano’s ADA, XRP and BNB Chain’s BNB gained as much as 2.8%. Leading memecoins dogecoin (DOGE) and shiba inu (SHIB) gained only 1%, suggesting that sentiment is not in favor of relatively riskier bets.

Despite the modest gains, some hedge funds are urging caution amid a busy data week, warning of possible near-term jitters that could hinder the ongoing rally.

Richard Kelly, head of global strategy at TD Securities, said in a CNBC interview earlier this week that it is not possible to say for certain whether the carry trade easing is over.

The Bank of Japan (BoJ) recently raised interest rates for the first time in more than a decade, destabilizing global markets and risk assets including bitcoin.

A surge in rates has created a ripple effect that has affected almost all markets, affecting the profitability of trading strategies. BTC fell by 15% in a 24-hour period, one of its biggest declines in recent years, while other major tokens lost up to 22%.

The BOJ’s deputy governor said in early August that the central bank would refrain from raising interest rates in volatile markets, which would affect yen trading and risk assets.

A former BOJ official also said the central bank would postpone further rate hikes until next year, suggesting market stability could be achieved in the near term.

Traders think that TON, as well as bitcoin, could see a nice rise.

Toncoin’s TON token is up 7% during Asian trading hours, according to CoinDesk Indices data. Stakeholders in the Toncoin ecosystem point to growth on the GameFi platform and its close integration with Telegram as reasons for the token’s continued growth.