After a deep fall of the bitcoin price below $18,000 on Saturday, the bitcoin price climbed above $20,000 on Sunday evening. That is, the price of Bitcoin rose by around 7.6% from the previous day and reached about $20,404. The Crypto market reported the lowest point of the world’s largest cryptocurrency since December 2020 on Saturday.
The AvaTrade market analyst, Naeem Aslam, said, “Bitcoin breaking the $20,000 price level was long coming, given the pessimism that we have in the market. The fallout from the collapse of the stable coin Terra USD in May will continue to ripple out”.
After A Sharp Crypto Selloff, Bitcoin’s Price Has Risen Above $20,000
The world’s largest cryptocurrency, Bitcoin is facing high volatility recently and this spike in Bitcoin price is the result of retail investors buying up the digital currency over the weekend. The head of international fixed income at National Alliance Securities, Andrew Brenner said, “the rise in Bitcoin was likely the result of retail investors buying up the digital currency over the weekend when few professional traders are working. Some buyers think now is a good time to get in because Bitcoin got down to a level which shows some near-term attractiveness”.
Ethereum also rosed more than 13% on Sunday
Like Bitcoin, Ethereum also rosed more than 13% and reached $1,131 from $993. Saturday marked the lowest price of Ether of this year. “At a time when the US Federal Reserve is reducing the supply of dollars by ending its expansive monetary policy,” Andrew Brenner remarked on Sunday. As long as the dollar continues to show strength, digital currencies are not where you want to be.
There is no specific significance for the rise in the price of Bitcoin and Ethereum in the crypto market. But this extreme volatility in cryptocurrency will lose the confidence of investors in the crypto market. One of the retired investment advisors in Columbus, Ohio said that I had bought about $10,000 worth of Bitcoin in 2020 and has been sitting on it since then, with no plans to sell or buy more. I have seen a lot of cycles. I have been watching this for 45 years. Humans just make the same mistakes over and over again”.
However, Sunday’s Bitcoin price was very close to the peak of Bitcoin’s last major bull which occurred in 2017. Last week, a crypto lending firm, Celsius blocked users from accessing their crypto funds. This worried the investors about the liquidation of Celsius. Marcus Sotiriou, an analyst in the UK said, if Celsius collapses, a liquid cascade could occur where whales who have leveraged bets on Bitcoin and Ethereum become liquidated”.