Bitcoin has risen around 20% from its lowest in May to above $30,000.
Bitcoin and Ether prices have climbed up by striking percentages after a week-long of low prices. Bitcoin has surged by 2.80% hitting a 24-hour high of $36,246 as of the time of reporting. Additionally, Ethereum had gained 8.17% in the past 24 hours, with a high of $2,731 recorded according to Binance-backed CoinMarketCap.
Bitcoin rose as high as 3.3% last Tuesday, its 3rd day of consistent gains. The spread between daily highs and lows has fallen to the lowest since January. This is despite weekend news about the US financial authorities’ plans to institute more regulation on their crypto markets.
Market Sentiments on Bitcoin and Ether Market
According to Gunnar Jaev, COO of First Digital Trust, the bullish trend of cryptocurrencies has made their clients firmer in holding on to their long-term crypto positions. For many others, the wild moves of Bitcoin are a sign of possible future recovery from earlier lows.
In a note to clients, Tom Lee, co-founder of Fundstrat Global Advisors LLC wrote that Bitcoin did rise by $2,000 over the weekend despite negative speculations. This is reinforcing the odds that Bitcoin has reached its lowest since bad news is not dropping prices further. He added that he anticipates Bitcoin to rise to over $125,000 before the year ends but is awaiting a rise of over $40,000 to signal the end of Bitcoin’s lows for the year.
The digital currency rally occurred in tandem with the issuance of a circular by the Reserve Bank of India (RBI), stating that banks operating under its scope should not cite RBI’s 2018 crypto ban. The ban had been placed on all holding crypto assets so that they were not allowed to operate in conventional bank setups. However, it was lifted in early 2020 after the Supreme Court ruled against it.
Crypto Market Controversies
The past few months have caused a hard hit on cryptocurrencies with Bitcoin’s price sinking to less than half of its value in mid-April. These events were attributed to increased user concerns after the US and Chinese governments announced the regulation of cryptocurrencies. Furthermore, the controversial environmental effect of mining Bitcoins has brought disquiet, with Elon Musk even going as far as declining payment for Tesla vehicles in Bitcoin.
Pepperstone Financial Pty head of research, Chris Weston stated that cryptocurrencies are messy at the moment and Bitcoin may break hard either way. Haruhiko Kuroda, Governor of the Bank of Japan affirmed doubts by central banks regarding Bitcoin due to its latest trends.
Nevertheless, Bitcoin has risen around 20% from its lowest in May to above $30,000. Additionally, noteworthy cryptocurrencies such as XRP, Dogecoin and Uniswap have also registered 3-13% gains, also the highest in the past 24 hours.
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