Bitcoin tops $25,000 for the first time since June before slipping
Bitcoin briefly reached $25,000, its highest point in June. However, it fell sharply due to cryptocurrency’s struggles to make significant moves higher.
According to CoinDesk data, the world’s largest digital currency soared above $25,000 on Sunday night for the first time since June. Monday’s flat price was $24,120.61
After a rise in U.S. stocks, cryptocurrencies have moved higher over the past month. The movement of digital currencies such as bitcoin has been closely related to that of stock markets, particularly the tech-heavy Nasdaq which rose around 12% over the past month.
After economic data showed that inflation pressures might be decreasing, investors have become more bullish.
While Bitcoin rose by around 15% during the same time period, it is still down 48% year to date. The crypto market has had a difficult few months with its value being wiped out by trillions of dollars and bankruptcyes, as well as liquidity issues that have plagued many players.
Since June, the cryptocurrency trades in a range of $20,000 to $24,000. Although it has made attempts to push higher, it has not been able to make a significant breakout. There are signs of a slight rally.
Vijay Ayyar (Vice President of Corporate Development and International at crypto exchange Luno), stated that BTC is showing signs of bullishness. This is primarily due to higher highs/lows being formed.
Altcoins, which are alternative coins to bitcoin, have also contributed to Bitcoin’s growth. Ether grew 56% over the past month, well ahead of bitcoin’s gains.
Investors are excited about an upgrade to Ethereum’s network, which could increase the efficiency of transactions. Ether, the native cryptocurrency, runs on Ethereum blockchain.
The final dress rehearsal for the upgrade, also known as the “merge”, took place last week .
The rally in ether is also affecting bitcoin.
Ayyar stated that BTC is now catching up to ETH due to the excitement surrounding the merger, which could be scheduled for September 15th.