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Bitcoin tops $22,000 as crypto market hopes contagion and shakeout are over
Bitcoin bounced above $22,000 on Monday, hitting its highest level in more than a month as the cryptocurrency market held out hope that the contagion and shakeout over the past few weeks are nearing its end.
The world’s largest cryptocurrency ended Monday at $21,610.59, up 2.76%, according to CoinMetrics. Bitcoin hit a high of $22,757.36, the highest level since June 16.
Other cryptocurrencies also bounced, with ether up 8.94% at $1,466 by the end of the day Monday.
The bullish sentiment was helped by a rally in stock markets in Europe and Asia.
U.S. stock futures were also higher. Cryptocurrencies, in particularly bitcoin, have been closely correlated with equity market trade. Often, a rise in stocks will also lift sentiment in the crypto market.
The cryptocurrency market held out hope that the contagion and shakeout over the past few weeks are nearing its end. - cnbc.com
Bitcoin showed that it is not dead yet on Monday as altcoin prices surged with it.
The world’s largest cryptocurrency surpassed $22,000 at one point before receding – and then exceeded the mark again later in the day. The strong performance contradicted bitcoin skeptic Peter Schiff’s recent claim that the top digital coin “is dead.”
Schiff is the CEO and chief global strategist at Euro Pacific Capital and an outspoken economic commentator and bitcoin skeptic. He made the claim in a panel discussion hosted by Capital.com.
Bitcoin is a long way down from its November 2021 selling price of $70,000 (XX).
“BTC really is just a modern example of the Greater Fool theory,” he said. “But I think the problem is we've run out of fools and that's why the price of bitcoin has dropped by about 70%.”
Investors and analysts have been monitoring bitcoin more closely than usual as it hovers between $20,000 and $22,000.
Those two levels are viewed as key benchmarks that, if sustained for a prolonged period, could send bitcoin and – and the entire crypto market – up or down considerably. - capital.com
A rally in bitcoin and ether pushed the crypto market cap back above $1 trillion as digital assets struggle against bear market.
A big rally in both bitcoin and ether on Monday helped drive the cryptocurrency market value back above the $1 trillion threshold for the first time since June 13.
Monday's gains should be a welcome sign to crypto investors, as they have had to deal with a devastating bear market over the past nine months.
The ongoing bear market in crypto has erased $2 trillion in market value and led to several bankruptcies among crypto firms like Celsius, Voyager Digital, and Three Arrows Capital, among others.
Those bankruptcies, combined with the more than 70% price crashes in popular crypto tokens, have led to declining confidence in the sector among investors.
But that could slowly turn around if bitcoin and ether show signs of reversals.
Bitcoin jumped more than 5% to cross above $22,000 on Monday, representing its highest level since early June and giving credence to the idea that $20,000 may hold as an important support level for the crypto token.
That same level acted as area of significant resistance during bitcoin's late 2017 bull market rally, and in technical analysis, old resistance tends to become new support (and vice versa). - Businessinsider.com
After soaring to dizzying levels, Bitcoin and other cryptocurrencies have lost more than half of their value in recent months.
Scott Duke Kominers discusses crypto's volatility, the potential for regulation, and why these digital assets are likely here to stay.
Recent high-profile financial meltdowns at Bitcoin, Celsius, and Terraform Labs, which together wiped out hundreds of billions in market value, helped trigger a flight from the cryptocurrency market, driving its value from $2.9 trillion last fall to less than $900 billion today.
This “crypto crash” has reinforced the perception of critics that markets for the digital currency—used primarily as an investment vehicle as it is not widely accepted as payment for goods and services—are little more than global casinos operating with virtually no rules or accountability.
Harvard Business School Professor Scott Duke Kominers spoke to the Harvard Gazette about why the crypto market has plunged in value recent months and how a tide of upcoming international regulation could affect the market. The interview has been edited for clarity and length. - hbswk.hbs.edu
Here are three reasons altcoin booming.
1. Bitcoin gains
Bitcoin's rebound above $22,000 has given tailwinds to altcoins which has, in surpassed the average growth rate of Bitcoin itself. Crypto markets commentator Sharat Chandra told Business Today, “Altcoins such as Matic have outperformed Bitcoin by more than 18 percent over the last 24 hours.”
2. Whales load up on altcoins
A crypto whale is a person or an entity that holds a significant quantity of cryptocurrencies. Investors have the ability to influence the markets. Data from Etherscan revealed that such investors are loading up on altcoins like Shiba Inu, MATIC, AVAX, and others while causing a significant hike in the values of these cryptocurrencies.
3. Positive forecast by analysts
Analysts and traders have forecasted a positive outlook on altcoins based on technical and fundamental analysis. Chandra stressed this point by saying, “Technical indicators for altcoins like ETH signal that an immediate bull run is in the offing.” - Businesstoday.in
Ether jumped as much as 10.7 percent on Tuesday in Asia, while Solana added 13 percent and Polkadot about 7 percent.
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 percent on Tuesday in Asia. Solana added 13 percent and Polkadot about 7 percent. Bitcoin at one point rose 6.8 percent 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.
Altcoins often outperform Bitcoin during rallies and underperform when prices are falling, in part because they’re a favourite of more speculative traders and tend to be less liquid. - Gulfbusiness.com
