Bitcoin rose about 20% from its lowest value in May to above $30,000.
Bitcoin and Ether prices rose impressive percentages after a week of low prices. Bitcoin was up 2.80%, reaching a 24-hour high of $36,246 at the time of writing. In addition, Ethereum has gained 8.17% in the last 24 hours, with a rise of $2,731 recorded according to CoinMarketCap supported by Binance.
Bitcoin was up 3.3% last Tuesday, its third day of consistent gains. The spread between daily highs and lows fell to the lowest level since January. This is despite news over the weekend of plans by US financial authorities to institute more regulation in their crypto markets.
Bitcoin and Ether market sentiments
According to Gunnar Jaev, COO of First Digital Trust, the upward trend of cryptocurrencies has made its clients more resolute in maintaining their long-term crypto positions. For many others, Bitcoin’s wild moves are a sign of a possible future rebound from past lows.
In a note to clients, Tom Lee, co-founder of Fundstrat Global Advisors LLC, wrote that Bitcoin rose by $2,000 over the weekend despite negative speculation. This is reinforcing the chances that Bitcoin has bottomed out as the bad news isn’t pushing prices down further. He added that he expects Bitcoin to rise to more than $125,000 before the end of the year, but is waiting for a rise of more than $40,000 to signal an end to Bitcoin casualties for the year.
The recovery of digital currency took place in conjunction with the issuance of a circular by the Reserve Bank of India (RBI) stating that banks operating under its scope should not cite the RBI’s 2018 crypto ban. A ban was placed on all cryptocurrencies so that they would not be allowed to operate in conventional banks. However, it was raised in early 2020, after the Supreme Court ruled against it.
The past few months have taken a heavy toll on cryptocurrencies, with the price of Bitcoin dropping to less than half its value in mid-April. These events were attributed to increased user concerns after the US and Chinese governments announced the regulation of cryptocurrencies. In addition, the controversial environmental effect of Bitcoin mining has brought unrest, with Elon Musk even going so far as to refuse Bitcoin as a form of payment.
Pepperstone Financial Pty’s head of research, Chris Weston, said that cryptocurrencies are in a mess at the moment and that Bitcoin could break anyway. Haruhiko Kuroda, chairman of the Bank of Japan, confirmed central banks’ doubts about Bitcoin due to its latest trends.
However, Bitcoin rose about 20% from its lowest value in May to above $30,000. In addition, notable cryptocurrencies such as XRP, Dogecoin and Uniswap also posted gains of 3-13%, also the highest in the last 24 hours.