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Bitcoin Price Catches a Bid Above $21,500
Bitcoin rose above $21,500 on Sunday as whale accumulation efforts finally hit the market. Bitcoin has a current marketcap of $402 billion and a market dominance of 42.4% and is a major driver of the market as a whole. Major altcoins rose including Ethereum and XRP, which rose double digits on news of Ripple's plans to expand internationally. This was a great market move for the cryptocurrency market as a whole.
The cryptocurrency market lost a total of over $2 trillion over the past month as investors removed their money from cryptocurrency assets. This came on recent plans for the FED to raise interest rates, global instability and overall political and economic risk after firms reported earnings.
In June, Jerome Powell raised the FED interest rate by 750-basis points, and July should see another 500-750-basis point jump. News of this caused the stock and cryptocurrency markets to plummet, and saw Bitcoin crash to a low of $17,500. This was a precipitous decline that removed confidence in the market. The recent lock if Celsius withdrawals and the crash of Luna, once the 4th largest cryptocurrency by marketcap crushed the cryptocurrency market.
cryptocurrency seems to follow the stock market and the major disruptions that have been caused by the world events along with the rise and interest rates are a big problem for Bitcoin. As money becomes more expensive to borrow, risk assets decline in value. This has added downward pressure on Bitcoin, but the recent rise is a good sign, and could be a dead-cat bounce, but time will tell.
Expect to see elevated volatility in the cryptocurrency market, and continued pressure around the $20,000 price point. This is both a psychological price point for investors and a point of resistance for the asset itself.
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