Bitcoin climbs above US$27,000 for the first time since August

BITCOIN extended its rally from last week, rising above US$27,000 for the first time since August. Other digital assets followed suit, with smaller tokens such as Solana, Litecoin and Bitcoin Cash rallying. 

The largest digital token had ended positive on Sunday (Sep 17) for the first week in five, and increased as much as 3.7 per cent to US$27,418 on Monday. Solana gained around 6 per cent, Litecoin rose 6.5 per cent and Bitcoin Cash jumped 8 per cent.

The price increases come with the Federal Reserve expected to keep borrowing rates steady when policymakers meet this week. Higher rates tend to reduce the allure of higher risk assets such as cryptocurrencies. 

“After a prolonged struggle at the psychological support of US$25,000, Bitcoin managed to hold steady. Range traders will now be looking to take profits just above US$30,000,” said Mati Greenspan, chief executive officer of Quantum Economics.

Some analysts are questioning how long this latest rally will last; and as reported previously, the level investors are watching on Bitcoin is US$28,800.

“I don’t see a clear catalyst for the move up,” said Dessislava Ianeva, senior research analyst at Kaiko. “In the current low liquidity environment, relatively low buying/selling pressure could amplify spot price movements and spur liquidations on derivatives markets.” BLOOMBERG