Bitcoin ends green but gains 3% on first day of trading

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Bitcoin ends green but gains 3% on first day of trading

Bitcoin ended the first trading day of the week in green, but it gave up some gain as the U.S. 10-year yield surged to its highest level in more than 16 years. The world's biggest digital asset dipped into the red and is down 1.57% in the last 24 hours. The Ethereum futures ETF failed to attract investors, with low trading volume reported on their first day of trading.

Bitcoin will end the trading day at just under $28,000, up about 3%, according to CoinDesk Indices data. At about $1670 apiece, ether is still changing hands, down modestly for the session. For the past 24 hours, the coindesk market index has rose by 1.6%.

In the equities market, investors were mixed Monday after U.S. lawmakers over the weekend prevented a government shutdown with a stop-gap bill. The dollar rose to 4.69%, with the U.S. 10-year Treasury yield soaring another 11 basis points to 4.69. The yield rose after unexpectedly strong manufacturing data underlined the resilience of the U.S. economy, with the ISM figures in at 49 versus a forecasted 47.7, suggesting that more rate hikes could be in the future.

The crypto market, particularly bitcoin, has seen a sizable rally recently, influenced by factors such as the SEC's ether futures ETFs approvals and other government decisions, QCP Capital published a recent note, highlighting that bitcoin has gained 15% in the past two weeks. However, QCP has concerns about the rally's sustainability, as shifts in demand and historical data suggest possible market downturns.

It's okay to drive price changes by reducing it, but it's okay to do it. It's not supposed to be all over the room, said Michael Safai, Managing partner of Dexterity Capital.

The markets know what traders do, he said. The optimism of their optimism is a bit misplaced; anyone who wants bitcoin or ether surely has it, he said.