BTC traded at $11,940 ahead of the New York opening bell as the bulls held on to weekly gains. The US stock market also inched higher in the pre-trading session, renewing its positive correlation with bitcoin.
As traders anticipated a new US stimulus deal to be reached, the Wall Street indexes, including the S&P 500, gained momentum, enabling BTC to sustain its gains above the $11.7K support.
Peter Dixon, an economist at Commerzbank, confirmed to the Wall Street Journal that the US Congress would have to pass “some form of a deal,” soon.
This renewed hope for some developments in the stalled stimulus discussions sparked increased biddings of the US stocks, Bitcoin, and Gold.
Furthermore, the benchmark cryptocurrency gained an added boost after the Federal Reserve Chairman Jerome Powell admitted that the Fed wanted to launch a digital dollar.
Crypto enthusiasts globally interpreted the comments as further validation of BTC and its underlying blockchain tech.
BTC Bulls Back In Driver’s Seat
The BTC price rallied higher on the back of surging stocks and renewed optimism in the global markets. The asset broke above the $11,560 resistance level before testing $11.8k, where it encountered some resistance.
However, the bulls were able to surmount the resistance and continued higher. The BTCUSD pair has now registered an inspiring rally from recent lows of $11,425 to break above $12,000.
The fundamentals for BTC look bullish in the long term, as the asset gains adoption amongst public and private corporations, as well as institutions.
Citing the surging institutional interest in BTC, one on-chain analyst highlighted in a recent tweet that there is an untapped $8.5 trillion sitting in sovereign wealth funds that have zero exposure to BTC.
Should these investors allocate even a small fraction of these trillions of Assets Under Management (AUM) toward BTC, it could be a phenomenal source of capital inflows for the cryptocurrency.
ETH Price Must Clear $385 to Sustain Recovery
At publication time, ETHUSD is slowly rising and trading near the support at $375. The digital asset embarked on an inspiring surge in today’s early sessions as it reclaimed the $370 level and climbed higher.
ETH even tested the $385 resistance but faced a severe rejection that forced it to retreat lower. The altcoin is trading at $371 during press time and must clear the $385 resistance to open the doors for a push towards $400.
ETHUSD chart by TradingView