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Bitcoin and other cryptocurrencies edged lower Friday but remained near their recent peak, little shaken by a selloff earlier in the week. The pattern of dipsand dip-buyingmay bode well for the overall momentum in digital assets.

The price of Bitcoin has shed less than 1% over the past 24 hours to $42,750, having earlier traded as high as above $43,000still shy of the largest digital assets 20-month high above $44,000 notched a week ago. Bitcoin has rallied by more than 50% in two months but continues to exhibit volatile...

Bitcoin and other cryptocurrencies edged lower Friday but remained near their recent peak, little shaken by a selloff earlier in the week. The pattern of dipsand dip-buyingmay bode well for the overall momentum in digital assets.

The price of Bitcoin has shed less than 1% over the past 24 hours to $42,750, having earlier traded as high as above $43,000still shy of the largest digital assets 20-month high above $44,000 notched a week ago. Bitcoin has rallied by more than 50% in two months but continues to exhibit volatile swings within its trend, selling off to below $41,000 earlier this week before bouncing back.

Its clear that Bitcoin is in a bullish uptrend. Dips are not pulling back nearly as substantially as expected following big rallies. The dips are instead getting bought up by what appears to be large-scale buyers, said Bob Ras, co-founder of the digital asset exchange Sologenic. This most recent long liquidation briefly shook the market, yes, but then a consolidation took hold and it appears now that we are again experiencing strong upwards momentum.

Traders continue to anticipate that U.S. regulators will soon approve the first spot Bitcoin exchange-traded fund (ETF), possibly ushering in a fresh wave of investor interest in cryptosbut thats not the only factor boosting crypto prices. The macro backdrop for risk assets has also helped, especially expectations that the Federal Reserve will cut interest rates multiple times next yearwith Bitcoin gaining with the Dow Jones Industrial Average and S&P 500 after the latest Fed meeting.

Beyond Bitcoin, Ether the second-largest cryptofell 1% to $2,270. Smaller tokens or altcoins were weaker, with Cardano and Polygon each sliding 3%. Memecoins were more muted, with Dogecoin and Shiba Inu shedding 1% each.

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Write to Jack Denton at jack.denton@barrons.com

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Bitcoin Slips. What the Dips Say About the Crypto Rally. - Barron's