Bitcoin has shot up along with several of its altcoin cousins. After spending the last month or so locked in the doldrums, the world’s number one digital asset by market cap has suddenly surged to a moderate position.
Bitcoin Seems to Be on the Rebound
At the time of writing, bitcoin is trading for over $45,000 per unit. This may not sound like much when compared with the highs the currency has hit in the past year or so. However, it’s good news for traders in that bitcoin has been traversing the high $30,000 range for some time after dealing with blows from the war between Russia and Ukraine and a hike in Fed rates. The situation has been quite frustrating for investors across the board, but it looks like the asset is beginning to rebound.
Ethereum has also experienced a nice jump at the time of writing, while Cardano – another altcoin – has surged by more than 40 percent, putting all its friends and neighbors to shame. Thus far, the crypto market is up by more than $500 billion. It has once again hit the $2 trillion mark, a feat it hasn’t accomplished since early February of this year.
However, while all this may seem positive, some analysts are warning that the crypto industry is not all lollipops and rainbows at this time. Some believe that if bitcoin cannot stay over $45,000, the market is doomed to fall back into darkness. Alex Kuptsikevich – senior market analyst at FX Pro – stated in an interview:
Confidence in the formation of a strong bullish momentum will come only after [the bitcoin price] fixes above $45,000, from where we saw reversals in February and early March.
He also stated that many of the altcoins that people have come to know have outperformed bitcoin this week. Many larger jumps in prices were seen amongst assets like Solana, BNB, and Ripple’s XRP. He commented:
Moderate but steady optimism around bitcoin is the best breeding ground for altcoin buyers. It is clearly seen that their dynamics are now better than that of [bitcoin]. If this trend continues for a couple more days, the effect of a feedback loop may work, when the outstripping growth of altcoins will pull bitcoin up.
How Will Oil Affect Crypto?
The crypto arena was quick to follow a big boom in the stock market that happened early in the week, but Marcus Sotiriou – an analyst at Global Block in the United Kingdom – is worried that rising oil prices across the globe could potentially have negative effects on BTC. He says:
Although bitcoin is remaining strong in the short term, rising oil prices increase the likelihood of a recession over the coming year or so. Despite the uncertain macro environment, crypto developers continue to innovate, and whales continue to accumulate bitcoin.
