After pumping to the $21k level over the weekend and surpassing the $400 billion market cap, Bitcoin’s price continued to rise this Monday, breaking past its one-month high, currently trading at $22.1k. Ethereum price also gained over 28% in the past seven days as the upcoming network upgrade from proof-of-work to a proof-of-stake consensus mechanism has excited the market.
Key Points:
With the recent bullish price action for top digital assets, the global cryptocurrency market finally surpasses the $1 trillion market capitalization level again, signaling a solid rebound from bearish momentum. In addition to the significant price growth over the past several days, Bitcoin’s trading volume is up over 19% in the past 24 hours, surpassing $35 billion.
1M BTCUSD // Source: CoinMarketCap
The uptick in trading volume and the recent bullish momentum are likely due to Hong Kong stocks rising on average by 2% yesterday, with futures for U.S. markets jumping as well.
Stocks are set to open in the green today as earnings season is upon us, providing valuable data to investors looking to capitalize on dividend stocks. In addition, dividend payouts are scheduled for the next two weeks, providing traders with funds to put back into the markets.
Coinbase has been in the news recently, with leaked emails suggesting the company will temporarily shut down its U.S. affiliate program soon. In addition, the nervous crypto market hinting the exchange might be insolvent.
However, with over $248 million in stablecoins outflowing from the exchange in the past week, Coinbase seems to handle the withdrawals with no issues, further contributing to the rise in crypto markets and helping the bullish momentum.
With rising Bitcoin prices and the seemingly bullish sentiment around crypto markets over the past several days, the question on everyone’s mind is, “should I buy Bitcoin now?”
While now is a good time as any to purchase Bitcoin, chances are BTC prices will dip below the $20k level once again in the next several weeks or months; however, don’t count on BTC to go below $20k for long, as the market is starting to recover and could prepare for a reversal in Q4 2022.
In addition, while stocks are poised to do well during earnings season, the Fed is still talking about a 100 basis point interest rate hike which is bound to influence stocks negatively. Since Bitcoin has a linear relationship with the stock market, chances are BTC and ETH prices will also suffer during the following global market correction.
Regardless, it’s great to see that market still has plenty of potential and momentum with the increase in trading volume for Bitcoin and the global cryptocurrency market cap surpassing the critical $1 trillion valuation level once again.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any stocks.
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