Bitcoin reaches $29,000, Ethereum reclaims $1,850, and Polygon climbs 4%

Bitcoin was back in action on Wednesday, gaining up to 3% to reclaim the 29,000-mark, while Ethereum climbed more than 2% to break through the $1,850 barrier.

Following Fitch’s action, Bitcoin and other key crypto assets were trading higher on Wednesday. The worldwide rating agency reduced the United States’ long-term ratings from AAA to AA+. This downgrade comes at a time when corporations’ results are very good.

Bitcoin was back in action on Wednesday, with the largest crypto asset gaining up to 3% to reclaim the $29,000 level. However, its largest peer, Ethereum, was trading higher, up more than 2% and trading beyond the $1,850 mark. The majority of altcoins were trading higher.

In the last 24 hours, Bitcoin has risen above $29,000. This increase may be due to MicroStrategy’s decision to sell $750 million in stocks and use the proceeds to purchase more bitcoin. Another possible cause is Fitch’s recent rating of the US dollar, which indicates anxiety about debt and fiscal deterioration.

This position, interestingly, contrasts sharply with the reaction observed in 2012, when corporations responded nervously to S&P’s downgrading of US debt. Investors are now looking forward to the Litecoin hardening event. Meanwhile, Ethereum has been trading in the $1,800 to $1,900 region for the previous week, and is presently trading around $1,867.

Except for the US dollar-denominated Tether, all of the big crypto coins were trading higher on Wednesday. Polygon gained about 4%, while Litecoin and BNB gained 3% apiece. During the early trading hours, Cardano, XRP, Dogecoil, and Polkadot were all trading 2% higher.

The worldwide cryptocurrency market cap was trading much higher, reaching $1.19 trillion after gaining more than 2% in the last 24 hours. However, total trade volumes increased by roughly 32% to $39.93 billion.

Bitcoin (BTC) has reversed its bearish trend after touching an overnight low of $28,500. It is currently trading near $30,000, a key resistance level to overcome for bullish price action. BTC dominance has surpassed 50% once more, signalling that Bitcoin will continue to lead the market in terms of volatility and movement in the short term.