Cryptocurrency bulls were relieved to see a bounce in digital assets on Monday, especially since the sector failed to rally last week alongside listed tech stocks.
Bitcoin (BTC) surged nearly 7% to break through $31,000, driven by global investors, while Asian and European stock markets rose. U.S. markets were closed for the Memorial Day holiday.
"Bitcoin has crossed the $30,000 level but needs to hold the $29,300 level on a retest to indicate a continuation of the uptrend," Marcus Sotiriou, analyst at digital asset broker GlobalBlock, said in a note Monday. "The relief in the crypto market was long overdue, as the U.S. stock market already rallied last week following Jerome Powell's speech that gave the market clarity on plans to implement a soft economic landing."
In the latest crypto rally, Ether (ETH) jumped just over 8% to around $1,940. Cardano (ADA) stood out among Ethereum alternatives, rising about 14% to about $0.54.
The rise in cryptocurrencies on Monday came amid a rush to Asian stocks following reports that major Chinese cities have eased restrictions on the corona virus after months of strict lockdowns. Traders are betting that the reopening of the economy could trigger a surge in consumer spending - which could boost corporate earnings in the coming weeks and indicate a bottom for stocks in the region.