(Bloomberg) — A sudden spike in Bitcoin on Wednesday briefly brought the largest cryptocurrency out of the narrow range where it’s spent most of the past week.
Bitcoin jumped as much as 5.7% to $41,691 before giving up all the gains and trading at $39,540 at 2:55 p.m. in Hong Kong, little changed for the day. Other tokens like Ether and Solana also enjoyed brief spikes. Stocks rose, with Chinese equities rallying on a pledge by Beijing for policies to boost financial markets.
Edul Patel, the co-founder of automated digital trading platform Mudrex, attributed the short-lived advance to retail investors speculating on a smaller-than anticipated rate hike by the Federal Reserve.
Bitcoin had spent the past few days mired in the tightest trading range since October 2020, a phenomenon some market watchers ascribed to long-term holders stepping in to buy whenever the token dips. Meanwhile, selling by short-term investors has kept Bitcoin and other digital assets from mounting sustainable gains.
Read more: Bitcoin Is Stuck in Tightest Range Since 2020 as Markets Gyrate
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