Bitcoin, ether continue rebound, leading other cryptos higher

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Bitcoin (BTC-USD) is further recovering from its deep slump at the beginning of the long weekend, as speculators’ risk appetite appears to be widening.

The world’s largest digital coin market cap on Tuesday is up and over $21K, climbing 3.4% to $21.2K as of shortly before 10:00 a.m. ET. That compares with an intraday low of $17.6K on Saturday, marking the first time when bitcoin (BTC-USD) fell below a previous cycle peak ($19.5K in 2017). And ethereum (ETH-USD) +3.6% is also extending its rebound to $1.15K after dipping to as low as $901 on Saturday.

The relief in crypto comes as all three major stock indices open higher, with the tech-heavy Nasdaq (+1.9%) in the lead.

If bitcoin (BTC-USD) can finish off a day over $22K, “I believe we head back to $30K,” said Jim Iuorio, host of the Futures Edge podcast in a Twitter post. Some are pointing to a healthy bear market rally taking hold (market prices are nonlinear), before potentially seeing more downside, while others think the bottom is in. Crypto exchange Gemini Co-Founder Cameron Winklevoss said Sunday that it “feels irrational” for bitcoin to trade under $20K.

Also, if bitcoin (BTC-USD) can overcome technical resistance of $21.3K, “then the next target of $23,500 could be reached as shorts get squeezed,” said Marcus Sotiriou, an analyst at U.K.-based digital asset broker GlobalBlock, in a note. “Bitcoin seems primed for more upside relief in the short term, as futures funding is starting to get negative on the way up, after being neutral yesterday.”

On a fundamental basis, crypto’s structural flaws make them an unsuitable basis for a monetary system, the Bank of International Settlements said in its 2022 Annual Economic Report, citing crypto’s reliance on unregulated intermediaries that pose financial risks. However, monetary systems could be constructed around central bank digital currencies (“CBDCs”), or digital representations of fiat currencies like the U.S. dollar.

Amid bitcoin’s (BTC-USD) rebound, some other cryptos are following suit, including binance coin (BNB-USD) +4%, solana (SOL-USD) +5.1%, dogecoin (DOGE-USD) +8.5%, wrapped bitcoin (WBTC-USD) +3%, shiba inu (SHIB-USD) +21.5% and avalanche (AVAX-USD) +2.4%.

Previously, (June 20) crypto volatility continues as bitcoin rebounds and holds above $20K.