Bitcoin posts longest rally since September, shiba soars

Bitcoin rose for a fifth day in a row, its longest winning streak since September last year, as investors re-entered risk assets around the world.

Bitcoin, the largest cryptocurrency by market capitalization, rose as much as 3.2 percent to $43,017. XRP rose as much as 16% at one point, with cryptocurrencies other than Bitcoin gaining even more. According to CoinMarketCap, Shiba led the meme coin stronger, surging 24%.

Global markets have been roiled in recent weeks as investors ponder the prospect of a rapid tightening of monetary policy. After reaching a record high of nearly $69,000 in early November last year, Bitcoin lost almost 50% of its market capitalization, dubbed the "crypto winter."

“From a fundamental point of view, Bitcoin has barely changed since last Friday, so the market may be in a short squeeze right now,” said Nathan Batchelor, chief bitcoin analyst at SIMETRI Research. “A broad look at the order book data shows that the market is still short, so a break above the $43,000 level could put it on track for a move towards $45,000.”

Bitcoin’s correlation with stock indices has grown in recent months, especially with the tech-heavy Nasdaq 100. The correlation between Nasdaq and Bitcoin is currently at 0.43.