Bitcoin rallied the most since July, breaking out of the narrowest trading range in about two years, as a drop in the dollar renewed demand for battered risk assets worldwide.
The largest cryptocurrency by market value advanced as much as 10.1% to $21,341 as of 12:05 p.m. in New York. The increase was the most since July 19. Bitcoin is outperforming most of the other top tokens such as Ether and Cardano. Bitcoin and Ether are still both down about 50% this year.
“It’s too early to predict that we are approaching another bull run, but if Bitcoin regains a higher support level between $22,000-$25,000 then it may boost investor confidence and ease off the selling pressure across crypto assets,” said Tarusha Mittal, co-founder of crypto staking platform UniFarm. “Given the fact that central banks around the world remain cautious due to the high inflation numbers, the current surge in the crypto market might be short-lived,” she adds.
The Bloomberg Dollar Spot Index tumbled 0.9% on Friday after surging to the highest on record this week. Every Group-of-10 currency strengthened against the greenback, with the risk-sensitive Australian dollar and Norwegian krone leading gains.