Bitcoin Crosses $20,000 Mark, Ends 3-Week Recession – Will Crypto Target $25,000 Next? – Bitcoin (BTC/USD)
The world’s largest digital currency by market value Bitcoin BTC/USD crossed the psychologically important $20,000 level on Tuesday after ending its longest stretch below this level since the token first crossed it in late 2020.
Bitcoin traded up around 4% to $20,185 on Tuesday.
For over three weeks, the token has traded below $20,000, deviating from the coin’s usual volatility.
What happened: Other digital assets are also moving higher, too Ethereum ETH/USD rising 10% to $1,476, the highest price this month.
Alt coins such as Solana SOL/USD and Dogecoin DOGE/USD has also come to the fore significantly.
Despite the progress, Bitcoin remains in months of price decline as central banks raise interest rates in an attempt to contain rising inflation.
Bitcoin is still down around 67% from the all-time high set in November 2021.
The market background: Cryptocurrencies rose with US markets on Tuesday as investors weighed risks to global growth and conflicting corporate news.
New economic statistics show a drop in U.S. consumer confidence, indicating that shoppers may be cutting back on spending amid recession worries and aggressive interest rate hikes.
Bitcoin’s high association with risky assets such as technology stocks has dashed expectations that it could be used as an inflation hedge.
For large parts of the year, the coin has moved in step with the American markets.
On Tuesday, the 60-day correlation coefficient between Bitcoin and S&P 500 contracts was approximately 0.63, with a coefficient of 1 indicating that the assets are moving in lockstep, while a value of -1 indicates that they are moving in opposite directions.
Meanwhile, according to a renowned quant analyst, amid uncertain market conditions, two major Bitcoin stakeholders are sharply rallying Bitcoin at lower levels.
Also Read: Elizabeth Warren, Alexandria Ocasio-Cortez Among Lawmakers Seeking To Stop Crypto Hiring From Federal Agencies
Whales Accumulate Bitcoin: Ki Young JuCEO of analytics firm Crypto Quant, informed his 308,400 Twitter followers that wealthy investors are actively buying Bitcoin on the leading digital asset exchange Binance.
“Whales accumulate BTC in Binance. Since Bitcoin price hit the $20,000 level, Binance’s spot trading volume dominance skyrocketed and is now 84%. The second largest is Coinbase, 9%. Not sure if these whales are institutions using prime brokers or crypto OGs (original gangsters) for now,” he said.
He added that whales have taken over the Bitcoin futures market.
“BTC futures traders are now mostly whales. The average amount of Bitcoin deposits into derivatives exchanges from other exchanges is relatively large, at a five-year high,” he said.
Next: ‘Dear Government: No More Bitcoin!’ Crypto was a failure in this nation, survey says
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