Bitcoin Trades Above $80,000 to Clock Third Day of Gains — 2nd Update
By Joseph Wilkins and Kirk MaltaisBitcoin rose for a third consecutive day, topping the $80,000 level that has been a stubborn cap in recent weeks.The move higher comes after Thursday's session saw a tech-fueled relief rally with broad gains seen from chip makers to data-storage companies across the major indexes. This uptick is being seen in both major cryptocurrencies and in stocks for companies involved with blockchain technology.The flagship cryptocurrency rose 5.9% at $80,966, solidifying a course for a positive end to the week after it had slipped to a near four-week low on the U.S. Senate's rejection of the Clarity Act on Tuesday.Gains were not limited to major cryptocurrencies, with Coinbase Global climbing 11%, Strategy Inc. rising 13% and Circle Internet Group up 7%.The Federal Reserve's quarter-point interest-rate hike Wednesday has complicated the path for nonyielding assets such as bitcoin and gold, which tend to lose their relative shine in a rate-raising cycle when compared with the return offered by bonds.The rate hike is one reason fund traders posted net outflows for bitcoin exchange-traded funds for six out of seven prior trading sessions. Flows changed course Thursday, posting a net inflow of $159.5 million into those ETFs on Thursday, according to data from CoinGlass.Bitcoin could outperform gold in the coming months if investors unwind some of the short positions surrounding cryptocurrency ETFs, according to JPMorgan.Analysts led by JPMorgan's Nikolaos Panigirtzoglou wrote that short interest in the flagship bitcoin ETF--iShares Bitcoin Trust ETF, or IBIT--remains close to year-to-date highs, while short interest in gold ETFs stands below historical averages."This contrast suggests that bitcoin still faces an overall more skeptical positioning backdrop than gold, perhaps due to more elevated hedging demand, despite the recent inflows and build up of futures positioning," the analysts wrote.Analysts are eyeing targets above the $80,000 mark should bitcoin continue its upward momentum. In a note published Friday, analysts with Coinbase Research said resistance targets above $80,0000 are $83,000, then $90,000, and then $95,000.Should the rally lose steam and see bitcoin retreating back below $70,000, prices are expected to keep falling back to yearly lows around $58,000, said Coinbase in its note.Write to Joseph Wilkins at [email protected] and Kirk Maltais at [email protected] to at