Bitcoin climbed back above levels seen just before the latest US regulatory crackdown as traders set their sights on $30,000 for the first time in more than nine months.
The largest cryptocurrency by market value rose as much as 2.7% to $29,171 during Asian trading hours, and was recently little changed at around $28,612. It last traded at $30,000 in June, just as a series of industry bankruptcies and scandals began to weigh on investor sentiment.
An overall increase in risk appetite in global markets has helped boost crypto prices as investors bet that a peak in interest rates is near and bank turmoil will ease further. Bitcoin has jumped over 70% this year, after tumbling 64% in 2022.
“Overall market sentiment remains bullish as we probe fresh 2023 highs,” said Patrick Chu, head of institutional coverage in Asia Pacific at crypto liquidity provider Paradigm. “Main flow we’ve seen into the quarterly close has been continued interest in short dated topside options as well as calendar spreads where people roll their topside exposure out towards end April or June.”
Bitcoin touched a 10-day low on Monday after Binance Holdings Ltd., the world’s largest crypto exchange, was sued by the US Commodity Futures Trading Commission for allegedly breaking trading and derivatives rules. Binance said it didn’t agree with the characterization of many of the issues alleged in the complaint.