The price of Bitcoin surpassed $20,000 for the first time in ages, Ethereum surged beyond $1,500 for the first time ever since post-merge turmoil and the whole market surpassed $1 trillion after three weeks below that threshold. These price increases indicate a crypto market recovery in the industry. According to statistics from CoinGecko, the price of one bitcoin has increased by 5% so far today to $20,732. The site claims that today is the first day since October 7 that the price of the most popular cryptocurrency has been above $20,000, after weeks of just little movement beneath that threshold.
- Bitcoin breaks the $20,000 barrier.
- Ethereum is back to $1,500 after almost losing support and going back to pre-$1,000.
- Other altcoins such as Solana, Cardano, and Dogecoin, are also performing well in the current recovery cycle.
Ethereum’s price has increased significantly today, rising 6% in the last day to $1,500. This is the first time Ethereum has surpassed the $1,500 level since September 15, when the price of ETH sharply dropped after the network’s successful merge upgrade. It increased marginally to $1,551 before falling.
Why Is The Crypto Market Going Up?
For the first time in weeks, the cryptocurrency market is exhibiting strength on the upside. The surge has brought the market value of all cryptocurrencies back beyond $1 trillion. A clear break above this region, which had been serving as a significant barrier in recent months, has contributed to confirming the market’s positive trend.
One reason is the macroeconomic trends analysts keep mentioning and the fact that the stock market is up today as many significant corporations report profits. Edward Moya, a senior market analyst at OANDA, also suggests the possibility that the U.S. Federal Reserve would soon scale down its impulsive plan to raise interest rates, reinforcing investors’ belief in the market.
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The current crypto rise may be due to a number of other factors too. Since the beginning of the week, the U.S. Dollar Index, a tool that measures the value of the dollar against a group of other foreign currencies, has sharply declined. Since bitcoin and the larger stock market have recently developed an inverse relationship with the dollar, a decline in the dollar frequently triggers a surge in risk assets.
In order to increase market resilience, U.S. Treasury Secretary Janet Yellen also suggested on Tuesday that more short-term treasury bonds should be issued by the government. This would probably boost the liquidity of the US dollar, a measure that also seems to be tied to the cryptocurrency market. Cryptocurrency prices often rise as the financial system is more liquid.
As such, the current crypto market is on the verge of entering a recovery phase.
Normally, Bitcoin drives market upswings, but in this case, Ethereum, the second-largest cryptocurrency, has outperformed it. Ethereum has increased 14.2% in value over the last day as a result of several short liquidations. It presently outperforms other Layer 1 rivals like BNB Chain and Avalanche to take the top spot among the major crypto assets. Not just Ethereum, though, is doing well. After following its lead, numerous more currencies and tokens have increased by double digits.
Top Crypto Performers
Today’s bounce has revealed two standouts in the Layer 1 area. Despite hitting a domestic low of $0.33 less than a week ago, Cardano, the venerable Layer 1 network that recently finished its Vasil hard fork update, has increased by 12.7%. The volume of traders shorting Cardano before to the market rally may be responsible for the unexpected surge.
Cardano is commonly perceived as being overpriced because of its sluggish development and technological difficulties. The eighth-largest cryptocurrency is recognized for its devoted community, nevertheless. It’s possible that ADA bulls have gone out in force to drive the currency higher.
Solana is yet another Layer 1 project that is currently doing well. With a recent low of $27.42 on October 21, Solana also looked to have broken down, just like Cardano had. It has, however, recovered significantly, maybe for comparable factors. Due to the natural demand for SOL within the NFT community and amongst traders, Solana’s vibrant NFT environment may have aided in its quick recovery.
The market rebound is also helping a number of tokens that are close to Ethereum. Two liquid staking methods, Lido and Rocket Pool, have daily double-digit gains.
One of just a few tokens to outperform Ethereum, Rocket Pool has increased by 16.4%. Messari, a source of market analytics for the cryptocurrency industry, reports that Rocket Pool’s market share has increased by 34% since September. Demand may now reflect greater usage since staking Rocket Pool’s native RPL token raises validators’ payouts on the protocol.
This raises everyone’s hope that this will be the beginning of a new crypto market recovery phase.
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