© Archyde.com. Bitcoin recovers $20,000… Cryptocurrency signs of resurgence
Expectations of slowing inflation in the United States have led to a ‘sprint’ in the cryptocurrency market in the new year. The price, which plummeted to $15,000 following the bankruptcy of the global cryptocurrency exchange FTX in November last year, settled in the $20,000 range in two months. However, among experts, there is a high voice of warning that this upward trend “may only be a temporary rebound.”
According to CoinMarketCap, a cryptocurrency market site on the 15th, as of 1:30 pm on the same day, bitcoin was traded at $20,744 per piece. At one point the previous day, the price soared to $21,075.
The warm wind in the coin market is not the story of the ‘great master’ Bitcoin. According to the Waveridge Index, which calculates the cryptocurrency market index, the CMX10 index, which tracks 10 major stocks such as Bitcoin, Binance Coin, Dogecoin, Solana and Polygon, rose 24.6% this year alone. From the beginning of this year to this day, the rate of increase in the price of Solana reached 129.8%.
With this upward trend, some are optimistic that the end of the ‘Crypto Winter (Winter of Cryptocurrency)’ is in sight. On the other hand, many experts warn that “this might become another ‘bear market trap’.” A bear market trap is a trap that temporarily rebounds from a bear market. “Bitcoin is currently overbought,” said Katie Stockton, co-founder of Fairlead Strategies, a market research firm.
What experts who are wary of optimism commonly point out is a decrease in trading volume. Glassnode, a blockchain analysis company, said, “Bitcoin has almost no pending transactions even at $21,000 and around $18,000, and it is concentrated in the $16,000 range.” If it doesn’t break through clearly, it might fall back to around $17,000,” he predicted.
Cryptocurrency exchange Bitfinex also pointed out that market liquidity and trading volume, which had plummeted due to the bankruptcy of FTX and its affiliate Alameda Research, which served as market makers in the coin market, were not recovered. Signs of macroeconomic stagnation and the US’ move to strengthen cryptocurrency regulations are also burden factors for the coin market right now.
Reporter Binnansae [email protected]
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