Bitcoin was little changed Monday after reaching its highest point above $23,000 since August over the weekend. While the recent rally has outpaced traditional equities, some are wondering how long the rally can last.
The biggest cryptocurrency by market cap fell slightly over the past day, trading around $22,874 by 10:50 a.m. EST, according to TradingView.
"The bulls are asking whether this momentum could lead us into a new cycle," B2C2's Adam Farthing said. "BTC resistance at $25,000 is probably key. It would be a tough nut to crack, but prices above there would likely create a lot more interest from outsiders to get involved once again."
Ether was down 0.4% since Sunday, although the second-largest cryptocurrency by market cap was still trading above $1,600. Ripple's XRP jumped 4.2%, Binance's BNB fell 0.2% and Cardano's ADA slipped 1.2%.
Bernstein analysts Gautam Chhugani and Manas Agrawal were cautious, saying the likelihood of the rally continuing is slim with no signs of "any new capital allocations to sustain this rally."
"As we interact with multiple institutional players, we do believe institutional capital will start positioning themselves in crypto in 2023, as crypto heads towards a more regulated asset class," the analysts wrote in a note.
The crypto market is "firmly split between those who believe this is a bear market rally driven by short covering and those who feel that current prices simply represent a normalization after the chaos of late 2022," according to Farthing.
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