Bitcoin price has come under pressure in 2022 following the collapse of algorithmic stablecoin terraUSD and subsequent bankruptcy filings from lender Celsius and hedge fund Three Arrows Capital.
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Bitcoin briefly hit $25,000 to hit a June high before plummeting as the cryptocurrency struggled to make any significant moves higher.
According to CoinDesk data, the world’s largest digital coin rose above $25,000 late Sunday for the first time since mid-June.
Bitcoin was trading at $24,178.52 at around 06:05 a.m. ET on Monday, down more than 2% from 24 hours ago.
Cryptocurrencies have edged higher in the last month or so after US stocks rallied. Digital currencies like bitcoin are relatively correlated with stock market movements, especially the tech-heavy Nasdaq, which itself has gained about 12% in the last month.
Investors have become more optimistic after economic data suggests that inflationary pressures may ease a bit.
Bitcoin has gained about 15% in the same period but it is still down about 48% so far. It’s been a rough few months for the crypto market, with trillions of dollars wiped out of its value and Bankruptcy and liquidity problems make it difficult for some players.
The cryptocurrency has been trading in a range since late June, around $20,000 to $24,000. Although it has shown efforts to push higher, it has struggled to make a significant breakout. But now there are signs of a small rally.
Vijay Ayyar, vice president of corporate and international development at crypto exchange Luno, told CNBC: “BTC continues to show bullish signs mainly due to the highs and lows being formed.
Bitcoin’s rise can also be attributed to a rally in altcoins or altcoins. Ether rose 56% in the last month, outstripping bitcoin gains.
That’s because investors are excited about a long-awaited major upgrade to the ethereum network that could improve the efficiency of transactions. Ether is the native cryptocurrency that runs on the ethereum blockchain.
upgrade version, called “fusion”, ran the last costume rehearsal last week.
That recovery of ether is also moving to bitcoin.
“We are seeing BTC catching up with ETH, due to excitement about the consolidation, likely scheduled for September 15,” Ayyar said.
