The lack of clarity around crypto’s regulatory framework hasn’t stopped bitcoin from surging, as investors haven’t abandoned hopes for clearer U.S. rules After weeks of looking all but lost amid a stunning decline this year, bitcoin broke above $86,000 on Monday to touch its highest level since late January. That’s likely a relief for crypto bulls, but the comeback might say less about bitcoin’s revival than a marketwide return of risk appetite — from chip and software names to meme stocks. The world’s No.1 cryptocurrency has now returned to its highest level in eight months.
Eastern time Monday, bitcoin was hovering at its highest level since Jan. 28, when it traded at $89,004.47, according to Dow Jones Market Data. David Booth on Why You Shouldn't Panic Sell Play video: David Booth on Why You Shouldn't Panic Sell Bitcoin’s upside was riding alongside a broader momentum trade on Wall Street, with technology and artificial-intelligence names on the U.S. stock market surging in tandem. The Roundhill Magnificent Seven ETF — which tracks shares of Alphabet , Amazon.com , Apple , Meta Platforms , Microsoft , Nvidia and Tesla — was up 3.5% Monday, logging its first record close in five months.
The PHLX Semiconductor Index jumped 4.3%, while the iShares Expanded Tech-Software Sector ETF rose 2.4% Monday, according to FactSet data. Don’t Short Yourself offers weekly money tips to help you earn it, stack it and grow it. I would like to receive updates and special offers from Dow Jones and affiliates.
I can unsubscribe at any time. Monday’s market action is “a collective statement of the resilience that we saw following last week,” said Mark Hackett, chief market strategist at Nationwide Investment Group. The fact that stocks largely shrugged off last week’s interest-rate hike from the Federal Reserve, ongoing uncertainty in the oil market and the 10-year Treasury yield breaking above 5% is, in itself, an “all-clear signal” for markets, Hackett told MarketWatch in a phone interview Monday.
To be sure, calm markets do have a tendency to turn volatile quickly. Broader financial markets still face a growing list of threats, including from the Iran war and its uncertain path after more than six months. But, for now, investors in the stock market have decided to put worry aside.
That’s part of the reason why the risk-on sentiment is beginning to spread to cryptocurrencies — an asset class known for its volatility — which has helped bitcoin’s comeback from the graveyard, Hackett said. Interestingly, the crypto rally runs counter to expectations that the collapse of the Digital Asset Market Clarity Act could weigh on bitcoin. Instead, the market largely looked through it.
Extract — continue reading at the source.
