Bitcoin (BTC) has recently experienced a significant surge, reaching $35,2022, a level last seen in May. This rise in Bitcoin’s value has also invigorated the altcoin market.
Cryptocurrencies, often a topic of debate and one of the more controversial investment tools in recent years, have been somewhat out of the spotlight compared to their previous popularity. The market, which once boasted a nearly $3 trillion volume in the latter half of 2021, has been hovering around the $1 trillion mark lately. However, there are indications that this trend might be shifting, as evidenced by Bitcoin’s recent dramatic increase.
BTC prices, which have been relatively stable between $23,29 and $24,30 since the beginning of the year, have seen a notable surge in the past few hours. Bitcoin, which was trading at $35,500 just 10 hours ago, spiked to a significant new level within a short span, marking a daily increase of an impressive percentage. Despite some pullback at the time of writing, it appears that the cryptocurrency markets are entering a new phase.
The highest level of the last year and a half was seen
Examining the BTC price chart, it’s evident that the $35,2022 level was last reached on May 30. This means that it’s been a year and a half since the BTC price last attained these levels. Additionally, this recent surge in Bitcoin’s value has successfully breached the $30,200 level, which was considered a significant resistance point. With this breakthrough, investors are likely to start viewing the new, higher level as a support point, indicating a potential shift in market dynamics and investor sentiment towards Bitcoin.
Faces are also smiling in altcoins
The sharp increase in Bitcoin’s value has also led to a rise in the prices of altcoins. Looking at the performance of the top 10 most popular cryptocurrencies, a general uptrend is observable. Ethereum (ETH) experienced a 7 percent increase, Binance Coin (BNB) rose by 3 percent, Ripple (XRP) saw a 3.27 percent increase, Solana (SOL) went up by 0.45 percent, Cardano (ADA) increased by 5.13 percent, Dogecoin (DOGE) rose by 6.67 percent, and Tron (TRX) increased by 2.32 percent. This overall upward trend across various cryptocurrencies suggests a positive market response following Bitcoin’s significant price surge.
Why are cryptocurrencies rising?
The recent upsurge in the cryptocurrency markets can be attributed to two primary factors. Firstly, the upcoming Bitcoin Halving period is drawing near. For those unfamiliar, the Bitcoin Halving is often anticipated as the onset of a bull market, or a period of rising prices. Secondly, the U.S. Securities and Exchange Commission (SEC) is on the verge of approving Exchange-Traded Fund (ETF) applications that would allow substantial funds to flow into Bitcoin. This development signifies a potentially huge influx of capital into the market. These two factors combined are contributing to the rising trends observed in the cryptocurrency markets.
Note: It’s important to remember that crypto assets are high-risk investment instruments. This article should not be considered as investment advice.