Bitcoin posts longest rally since September

[NEW YORK] Bitcoin rose for a 5th consecutive day, the longest winning streak since September, as investors re-embrace risk assets across global markets.

The largest cryptocurrency by market value gained as much as 3.2 per cent to US$43,017. XRP jumped as much as 16 per cent as so-called alt coins rallied more. Shiba Inu led memecoins higher, surging 24 per cent, according to CoinMarketCap.

Global markets have been whipsawed in recent weeks as investors contemplate the prospects of rapid monetary tightening. After reaching a record high of almost US$69,000 in early November, Bitcoin lost as much as half its value in what has been called a "crypto winter."

"On a fundamental level, little has changed for Bitcoin since last Friday, so we could be seeing a short squeeze in the market," said Nathan Batchelor, lead Bitcoin analyst for SIMETRI Research. "A quick glance at the order book data shows that the market is still positioned short, so a break above the US$43,000 level could cause the current up move to target towards the US$45,000 level."

A strengthening relationship between Bitcoin and the stock indices has emerged in recent months, particularly with the technology heavy Nasdaq 100 index. The correlation between the Nasdaq and Bitcoin currently stands at 0.43.

BLOOMBERG