Crypto ‘Altcoins’ lead push higher as Bitcoin jumps above $22,000

LONDON, ENGLAND - APRIL 25: In this photo illustration of the litecoin, ripple and ethereum cryptocurrency 'altcoins' sit arranged for a photograph on April 25, 2018 in London, England. Cryptocurrency markets began to recover this month following a massive crash during the first quarter of 2018, seeing more than $550 billion wiped from the total market capitalisation. (Photo by Jack Taylor/Getty Images) Photographer: Jack Taylor/Getty Images Europe

Smaller, lesser-known digital tokens commonly referred to as altcoins led a push higher in cryptocurrencies that saw Bitcoin head toward $23,000.

Ether, the second-largest digital currency, jumped as much as 10.7% on Tuesday in Asia. Solana added 13% and Polkadot about 7%. Bitcoin at one point rose 6.8% and was trading at $22,880 as of 9:15 a.m. in Tokyo.

Ether is extending a rally that began last week after developers of the Ethereum blockchain gave a target for the long-anticipated software update that is projected to lower the network’s energy usage.

Traders are paying close attention to any indication that Bitcoin is breaking out of its recent pattern of swinging between $19,000 and $22,000.

The token hasn’t traded consistently above that range since mid-June, when news that crypto lender Celsius Network had frozen withdrawals sparked renewed panic selling. Virtual coins were hammered in May in the wake of the collapse of the TerraUSD stablecoin.

“Bitcoin has recaptured the $22,000 level as some short-sellers need to call it quits,” Edward Moya, senior market analyst at Oanda Corp., wrote in a note. Cryptos are starting to look attractive now expectations for Fed tightening have eased, he added.

Altcoins often outperform Bitcoin during rallies and underperform when prices are falling, in part because they’re a favorite of more speculative traders and tend to be less liquid.