Bitcoin and Other Cryptos Rise: Challenges Ahead for the Sector
Bitcoin and other cryptocurrencies are on the rise early on Monday, with Bitcoin up 4.1% over the last 24 hours to $63,311. This surge comes after news that the trustee of Mt. Gox, the collapsed cryptocurrency exchange, will begin to return over $8.5 billion worth of crypto to creditors starting in July.
Despite this positive movement, the digital asset market still faces challenges as Bitcoin remains range-bound. The price of Bitcoin has dropped since hitting a record high near $74,000 in mid-March. Antoni Trenchev, co-founder of crypto lender Nexo, warns of potential retesting of the early-May low of $56,500 as excitement around ETF inflows diminishes and the market awaits the start of Mt. Gox repayments.
Ether, the second-largest cryptocurrency, was also up 3.5% at $3,483 and has seen an 80% increase over the past 12 months. The Securities and Exchange Commission has approved rule changes to allow spot Ether exchange-traded funds to trade, with final approvals expected this summer.
Smaller cryptocurrencies like Solana, Cardano, and Dogecoin were also in the green, with gains ranging from 3.8% to 6.8%. The overall outlook for the cryptocurrency market going into the second half of the year remains uncertain, with potential challenges and opportunities on the horizon.
For more updates on the cryptocurrency market, stay tuned to Barrons.com.
