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Bitcoin (BTC) tops $22,000, ethereum jumps as crypto markets recover


Bitcoin and crypto prices have come under pressure in 2022 as traders feel the fallout from several major industry crashes.

Selim Korkutata | Anadolu Agency | beautiful pictures

Bitcoin rallied above $22,000 on Monday, hitting a high in more than a month as the crypto market raised hopes that the spread and shake-up of the past few weeks was coming to an end.

According to CoinDesk data, the world’s largest cryptocurrency was trading around $22,135.30 as of 8:57 a.m. ET, according to CoinDesk data, up about 4%. Bitcoin traded at a high of $22,493.61 over the past 24 hours, its highest level since June 16.

Other cryptocurrencies also rose with ether up more than 9% compared to the price 24 hours ago and Polygon MATIC token up 16%.

Optimism was helped by a stock market rally in Europe and Asia. U.S. stock futures were also higher. Cryptocurrencies, especially bitcoin, are strongly correlated with stock market trading. Usually, a rise in stocks will also lift sentiment in the crypto market.

But investors are also watching to see if the carnage over the past few weeks, which has seen bitcoin drop nearly 70% from its all-time high reached in November, and billions of dollars lost in the wake of the pandemic. erased from the market, may end or not.

The collapse in prices has led to the collapse of several well-known companies in the sector, most notably hedge funds. Three capital arrows and Celsius crypto lenderBoth have filed for bankruptcy.

These traps have causing contagion throughout the industry and saw other affiliated companies come under pressure.

Much of this is due to large amount of leverage and borrowing took place during this latest crypto cycle. For example, Three Arrows Capital took out loans that could not be repaid after the crypto crash. Celsius, which has been offering clients over 18% yield on depositing their digital currency, has been doing high-risk trading operations to earn interest in an attempt to return it to its users.

Cryptocurrency companies have been selling off any assets they have to try to meet their liabilities, which has put pressure on the broader market.

Analysts say there are signs that the spread may be slowing.

David Moreno, research analyst at CryptoCompare, wrote in a research note: “The worst of the market contagion may have been the way it was, with much of the latter forced selling. our backs”.

Despite the recovery, the crypto market is still suffering. Both bitcoin and ether are down more than 50% this year. Bitcoin had the worst quarter for more than a decade in the second quarter.

Analysts are still unconvinced of any significant upside move in the near term.

“Given the severe negative business results in Q2, it’s not surprising that a ‘mild’ rally has occurred. We believe the market will continue to be range-bound in the coming months. “, Moreno said.



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