On Friday, sellers of risk assets are taking a moment to pause, as cryptocurrency markets have shown significant gains alongside U.S. stocks after a lackluster week of price movement.
Bitcoin briefly surpassed $85,000 during U.S. trading hours and is now priced at $84,400, reflecting a 4.7% increase over the last 24 hours. Every cryptocurrency in the CoinDesk 20 Index saw a rise during this timeframe, with Chainlink’s LINK, Solana’s SOL, and SUI leading the charge.
This uptick in prices coincided with an increase in risk appetite within traditional markets as well. The S&P 500 and the tech-focused Nasdaq reported gains of 1.7% and 2.3%, respectively. In contrast, gold, which had been outperforming bitcoin during recent sell-offs, retreated below $3,000 after briefly surpassing this milestone yesterday for the first time in its history.
Today’s rally has helped Bitcoin climb back above its 200-day moving average after previously dipping below this trendline for the first time since the crypto market’s correction last August. The 200-day moving average serves as a popular benchmark for traders and investors to assess long-term trends in asset prices; it often acts as support during bullish markets, while falling below it could indicate a risk-off or bearish sentiment.
Ending the day above the moving average, which is currently at $83,767, would be a positive sign for bulls, potentially indicating that the worst of the correction is behind us—at least for now. Conversely, if the moving average is confirmed as resistance, it may signal the possibility of a more significant pullback.
A well-known cross-asset trader remarked that both bitcoin and stocks still have room to grow “at least for a while,” recovering from oversold conditions. He mentioned earlier this week that “it feels like we are nearing the end of panic for now and may spend a few weeks bouncing back,” adding that the market will have the chance to reassess later.