Does Bitcoin’s Surge Signal Greater Risk Appetite?

Bitcoin and other cryptocurrencies advanced on Wednesday, reversing an earlier pullback. Stocks were also higher, partly due to the decline in Treasury bond yields.

Trading volume is starting to tick higher, but still below January highs. Most cryptocurrencies have been significant gainers in the last 24 hours, potentially signaling the market’s risk-on appetite.

Still, futures market data continues to suggest a neutral bias among traders. That means markets could remain indecisive about the next momentum-driven move, at least for the short term.

Technical indicators have improved over the past few days, suggesting a strong buying zone between $40,000 and $46,000. Over the long term, however, buying activity could wane until momentum signals turn positive. Here’s some of the latest prices published on Wednesday:

Bitcoin: $44739, +1.07%

Ether: $3258, +4.37%

S&P 500 daily close: $4587, +1.45%

Gold: $1834 per ounce, +0.38%

Ten-year Treasury yield daily close: 1.93%

Regulatory issues still bother cryptocurrencies threatening to stall the pace of institutional crypto adoption. Commodity Futures Trading Commission Chair Rostin Behnam asked the US Congress to provide his agency with an additional $100 million so it can properly oversee crypto markets.