Cryptocurrencies edged higher for a second day on Wednesday, mirroring wider global markets, on tentative hopes a conflict in Ukraine can be avoided.
Bitcoin rose 0.9% to US$44,050 – well above the crucial US$40,000 – while its closest rival by market value, Ethereum, gained 3.2% to US3,139.
Both digital tokens are about 35% below all-time highs seen in November, as rising inflation, global interest rate hikes and the escalating tensions between Russia and the US left previously bullish speculators seeking safer havens.
However, February has so far offered some relief, as Bitcoin and Ethereum bounced back from six-month lows after January’s colossal selloff, with the braver investors opting to ‘buy the dip’.
Bitcoin went on its longest rally since September, partly fuelled by speculation Russia may be about to accept crypto as legal currency (read more).
“Russia’s defence ministry has confirmed that while large-scale drills across the country continued, some units of the Southern and Western military districts have completed their exercises and started returning to base,” SP Angel, oil and gas broker, said Tuesday.
Alt-coins Cardano, Avalanche, and Terra climbed 3.0%, 14.0%, and 2.7% respectively Wednesday.
Outside of the top 10, Polygon, Algorand, and Decentraland advanced 5.1%, 5.2%, and 10.0% respectively.
Overall, 90 of the leading 100 cryptos were trading in positive territory.
Unus Sed Leo led the fallers, down 7.5%.
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