Ethereum Classic surged 53% overnight, Bitcoin rebounded and Ethereum also returned to its historical high

Cryptocurrencies rose again on Wednesday, with Bitcoin (BTC) up about 5% in the past 24 hours, a reminder that easy money prevails. Bitcoin is trading at $57,133 as of writing. But the most important news of the day was the 53% jump in the price of Ethereum Classic (ETC) in the past 24 hours. ETC was controversially spun off from the Ethereum-dominated blockchain a few years ago.
The second-largest cryptocurrency, Ethereum (ETH), rebounded from Tuesday's sell-off and approached its all-time high around $3,500.

Bullish trading activity was boosted on Wednesday by news that Fidelity National has partnered with cryptocurrency custodian NYDIG to allow U.S. banks to offer customers the ability to buy, sell and hold bitcoin.
“Bitcoin could continue to rally above $60,000 on the Fidelity news alone,” wrote Edward Moya, senior market analyst at foreign exchange brokerage Oanda, describing the news as a “game changer.”
Additionally, news that cryptocurrency-focused financial services firm Galaxy Digital has agreed to acquire U.S.-regulated cryptocurrency custodian BitGo is another positive development for cryptocurrencies.

But the biggest news of the day was the 53% jump in the price of Ethereum Classic (ETC), which controversially split from the dominant Ethereum blockchain a few years ago, over the past 24 hours.
As of 21:00 UTC (4 p.m. ET), Bitcoin was trading at around $57,133. It is up 5% in 24 hours.
Bitcoin’s 24-hour price range: $53,633 to $57,356 (CoinDesk 20)
As of 21:00 UTC (4 p.m. ET), Ether was trading around $3,476. It is up 2.6% in 24 hours.
Ether’s 24-hour range: $3,237-$3,530 (CoinDesk 20)
Ethereum Classic’s Rally Could Be a Sign of a Crypto Bubble The cryptocurrency market is witnessing such a bull run that some failed coins that were left behind during last year’s Bitcoin and Ethereum rally, such as Ethereum Classic, are gaining new perspective from speculative traders, surging to previously unimaginable levels.
The Ethereum Classic blockchain split from the better-known Ethereum as part of a contentious “hard fork” in 2017. Last year, the price of Ethereum’s native cryptocurrency, ether, quadrupled as enthusiasm for the potential growth of decentralized finance, or DeFi, grew. While the largest cryptocurrency, Bitcoin, doubled, Ethereum Classic’s token, ETC, rose just 26%.
Now, in 2021, cryptocurrency prices are soaring across the board: Dogecoin (DOGE), a dog-themed joke token, has seen its price rise 117-fold. ETC has joined the fray, and the digital asset market has seen its market capitalization increase 13-fold this year to about $13 billion.
Ethereum Classic hit an all-time high of $87 early Wednesday morning and is now over $100 at press time, up 59% in 24 hours, according to data provider Messari.
Although few major cryptocurrency investors or analysts often mention the network as one of several potential “Ethereum killers” — emerging blockchains like Cardano, Polkadot, Solana, and Binance Smart Chain that could offer Ethereum alternatives for DeFi applications.
“It seems to be led by ‘cheaper’ Ethereum play and retail flows, which are pushing DOGE to extreme highs,” Denis Vinokourov, head of research at Synergy Capital, told CoinDesk.
BITCOIN GROWTH AS TRADITIONAL MARKETS Bitcoin was in full recovery mode on Wednesday as traders shrugged off concerns about rising U.S. interest rates a day after they unsettled cryptocurrency markets.
The rebound came as U.S. stocks rose on strong economic data and after Treasury Secretary Janet Yellen walked back her warnings that easy monetary policy was eventually coming to an end.
Bitcoin, the largest cryptocurrency, often trades in sync with traditional markets as large institutional investors increasingly view it as a hedge against future inflation.
“Yellen had to clarify her comments and essentially retracted all of them,” Moya wrote in an email.
Some analysts called Yellen's comments just a financial side note.
“With Fed Chairman Jerome Powell now at the helm of the Fed, he remains dovish and ready to support the economy,” wrote Mati Greenspan, founder of Quantum Economics. “As long as the fundamentals remain intact, the party will continue.”
Price Chart Shows Bitcoin Faces Resistance at $58,000 Bitcoin is approaching initial resistance around $58,000, a level at which traders have been taking profits over the past few months. The cryptocurrency is recovering from the mid-April sell-off, although technical analysts remain cautious.
Katie Stockton of Fairlead Strategies wrote in an email: "Short-term overbought conditions have moved back below the $62,000-$65,000 resistance level, which is a short-term obstacle." (Unicorn Finance)