Investing.com – Bitcoin rose modestly on Thursday supported by ongoing tentative demand for cryptocurrencies.
Bitcoin rose 1.37% to $8,238.3 on the Bitfinex exchange.
Bitcoin was restricted to a narrow $270 trading range suggested that while demand for cryptos has improved, traders remained cautious as the popular digital currency’s previous attempts to mount a sustainable recovery was met with strong resistance.
Yet, underlying sentiment on cryptocurrencies during bitcoin’s previous failed attempts to recover appeared somewhat different to the current environment as traders continued to buy the dips in cryptos pointing to firmer crypto demand.
Data from coinmarketcap.com showed the total market cap of cryptocurrencies rose to $355 billion – at the time of writing – from $339 billion Wednesday.
Some cited the end of the U.S. tax season earlier this week Tuesday as the trigger for the turn in sentiment as the wave of selling in cryptos to fund taxes – following huge crypto profits in 2017 – has faded.
Tom Lee, managing partner and the head of research at Fundstrat Global Advisors, echoed Bogart's comments, predicting that the end of tax-selling pressure would support a rally in bitcoin to $25,000 by the end of 2018.
Bitcoin Cash rose 7.73% to $962.19, while Litecoin rose 5.12% to $145.45.
Ripple XRP rose 5.85% to $0.74098 on the Poloniex exchange, while Ethereum rose 6.20% to $555.50.