Crypto Equities Rise in Pre-Market Trade as Bitcoin Hits 3-Week High
Debt ceiling resolution and bullish Asia news may be setting up the market for increased volatility this week
Vintage Tone/Shutterstock, modified by Blockworks
Despite relatively muted trading in the digital assets market following Memorial Day celebrations in the US, bitcoin has managed to eke out its highest point in almost three weeks, driving crypto-related equities higher.
Even in the face of rising valuations for digital assets this week, bitcoin appears to be closing in on its first monthly loss since December of last year.
The impact of that outcome might not be as widely felt, however, as the narrative surrounding the US debt ceiling finds a potential resolution and Hong Kong allows retail investors to find fresh investment opportunities.
If pre-market trading is any indication of how crypto may react in the coming days, coming off the back of a long weekend, the market may be in for increased volatility.
Publicly-listed US exchange Coinbase stock (COIN) was up 3.9% to $59 on Tuesday in pre-market trade, alongside Marathon Digital, a bitcoin miner — good for 5.8% to $9.52 per share, data shows.
There’s also one day left for the month of May, so it’s still possible that traders may drive up prices and cement bitcoin’s fifth consecutive month in the green.
The asset would need to close above $30,000 in order not to break its current winning streak — a feat not entirely out of the question given its past performance, according to crypto service provider Matrixport.
“Many investors were scared about the debt ceiling and the potential default by the US government,” Matrixport wrote in a recent research note. “Now, they will need to find something else to be bearish about, as the market likely rallies.”
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