Bitcoin Rebounds as Bitcoin Nears $38K; Analysts Declare “Good Times Are Here”

Cryptocurrencies rallied on Wednesday, bouncing back from the previous day’s decline. Bitcoin (BTC) surged close to a new 18-month high, nearing $38,000 after dipping below $35,000 on Tuesday. Ether (ETH) also climbed over 3% to reach nearly $2,060, reclaiming the $2,000 level following a drop to around $1,900.

Solana (SOL) and Avalanche (AVAX), the native tokens of layer 1 blockchains, led the altcoin gains with impressive jumps of 18% and 23%, respectively.

SOL has maintained its leadership among altcoins, almost tripling in value over the past month. This surge follows decreased concerns about FTX dumping its tokens and a surge in demand from institutional investors. AVAX’s rise might be attributed to recent news that industry giants like JPMorgan and Apollo utilized the network to showcase a “proof of concept” for tokenizing funds, a hot trend in the crypto space.

The CoinDesk Market Index (CMI), comprising nearly 200 cryptos, showed a 5% increase, emphasizing the widespread positivity across digital assets.

“Bitcoin is going mainstream, and the bear is behind us,” stated Charlie Morris, founder of investment advisory firm ByteTree, in a market report on Wednesday. “The good times are here.”

ByteTree emphasized BTC’s robust performance compared to traditional assets like U.S. equity indexes and gold, both of which have also been on the rise.

Bitcoin safe

Bitcoin Outperforms Gold and Equities

“Bitcoin’s trend isn’t just strong in dollars but also against other crucial assets,” Morris highlighted. “This is crucial for institutional adoption as they typically seek additional returns before investing in alternative assets.”

Morris also pointed out the strengthening trend of altcoins, signaling a broader market recovery after a challenging two-year crypto winter.

The ByteTree Crypto Average (BCA) trend breadth indicator, measuring the equal-weight daily average price changes for the top 100 tokens, displayed a four-star rating out of five for the first time since April.