Cryptocurrencies rallied on Tuesday taking Bitcoin closer to breaking out of a one-month-old trading range and sparked big leaps in smaller tokens commonly referred to as altcoins.
The world’s largest virtual coin climbed as much as 6.8% to the edge of $23,000, its highest level since mid-June. Ether at one point gained almost 11%. Solana also reached a double-digit percentage gain.
After a rout sparked by tightening monetary policy, toppling of crypto lenders and the TerraUSD stablecoin, Bitcoin has struggled to escape a $19,000 to $22,000 range.
Julian Hosp, co-founder of Cake Defi, a crypto wallet solution provider said, “We’ve just seen that momentum change, and I think that momentum change is going to last for the second half of this year”
Ether price continues to rise as the developers of the Ethereum blockchain announced a target for the long-awaited software update that is projected to lower the network’s energy consumption.
Altcoins tend to perform better than Bitcoin during rallies and underperform when prices are falling, because they’re prefered by more speculative traders and tend to be less liquid.
Edward Moya, senior market analyst at Oanda Corp. stated in a note that “Bitcoin has recaptured the $22,000 level as some short-sellers need to call it quits”. He further added that Cryptos are starting to look attractive now as the expectations for Fed tightening have eased.