Bitcoin bounces back above $31,000
12:23, 21 July 2021
Bitcoin bounced back on Wednesday after trading for almost 24 hours under the $30,000 level. The drop under $30,000, seen on Tuesday morning, came after a sell-off on global equity markets on the previous day.
As the equity markets rebounded on Tuesday and Wednesday, so did the cryptocurrency market. Some positive news, such as FTX exchange’s record-breaking funding round, also contributed to the positive mood in the crypto space.
Bitcoin first jumped over $30,000 on Wednesday morning and then climbed above $31,000 around noon.
The world’s leading cryptocurrency was trading up 6% as of 1:00 PM (UTC+1). However, it was still down at around 3% over the past seven days, according to Coinmarketcap.com data.
Growth across the board
Bitcoin’s comeback also spilt over the whole crypto market as the correlations between the top crypto asset and its followers returned to normal after some desynchronisation in May.
Ethereum (ETH) went up 8.5% in the past 24 hours and returned above the $1,900 level. Cardano (ADA) and Polkadot (DOT) also recorded double-digit increases while Dogecoin (DOGE) was up over 17% and closing on the $0.2 level.
Overall, the crypto market capitalisation was up 7.3% on Wednesday to $1.25trn. Meanwhile, trading volumes remain subdued compared to April highs.
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Bullish sign?
Some market experts see Bitcoin’s rapid return above $30,000 as a good sign. Meanwhile, a fall under $29,000 would have opened the way for stronger declines.
“The fact that it broke below such a large psychological level after weeks of testing and didn't immediately continue downward is actually a very bullish signal,” Mati Greenspan, founder of crypto intelligence firm Quantum Economics, wrote in a newsletter.
“It could very well indicate that most of the weak hands have already left the market, and those still on the fence could be getting nervous about missing their entry,” he added.
Positive news
While the top cryptocurrencies have declined more than 50% from their recent all-time highs in April and May, large institutional investors continue to tap into this sector due to high interest from their clients.
On Wednesday, the FT reported that Bank of New York Mellon has joined State Street and four other banks in backing the planned cryptocurrency trading platform Pure Digital.
Meanwhile, news that crypto exchange FTX raised $900m in a Series B funding round also highlighted that institutional investors are willing to bet big on the crypto industry.
Further boost for cryptos is expected from “The ₿ Word” conference on Wednesday, expected to feature Tesla CEO Elon Musk, one of the top Bitcoin influencers, in a live discussion with Square CEO Jack Dorsey and ARK Founder, chief investment officer and CEO Cathie Wood.
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Read more: Equity market sell-off drags bitcoin below ,000
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