“The infection and the tremors are over for cryptocurrency”, really? We make status!

Bitcoin and cryptocurrency prices have been under pressure in 2022 as traders feel the fallout from a number of major industrial meltdowns.

Bitcoin jumped over $ 22,000 on Monday and reached its highest level in more than a month as the cryptocurrency market remains hopeful that the infection and tremors of recent weeks are coming to an end.

The world’s largest cryptocurrency ended Monday at $ 21,610.59, up 2.76%, according to CoinMetrics. Bitcoin peaked at $ 22,757.36, the highest level since June 16.

Other cryptocurrencies also rose, with Ether rising 8.94% to $ 1,466 late Monday.

The bullish mood was helped by a rally in the stock markets in Europe and Asia. US stock futures also rose. Cryptocurrencies, particularly bitcoin, have been closely correlated with stock market trading. Often, an increase in equities also leads to an increase in sentiment in the cryptocurrency market.

But investors are also keeping an eye on whether the carnage of the past few weeks, which has seen bitcoin fall nearly 70% from its record high in November and billions of dollars disappearing from the market, may be over.

The price crash led to declines for several well-known companies in this field, including the hedge fund Three Arrows Capital and the cryptocurrency lender Celsius, both of which filed for bankruptcy.

These breakdowns caused contagion throughout the sector and put pressure on other affiliates.

Much of this is caused by the huge amounts of leverage and loans that have taken place in this recent cryptocurrency cycle. For example, Three Arrows Capital raised loans that it could not repay after the collapse of the cryptocurrency. Celsius, which offered its customers a return of over 18% to deposit their digital coins, engaged in high-risk trading activities to earn interest and try to pay it back to its users.

Cryptocurrency companies sold all the assets they owned in an attempt to meet their obligations, which put pressure on the market in general.

Analysts say there are signs that this infection may be declining.

“The worst spill on the market has probably run its course, with the bulk of forced sales behind us,” David Moreno, a research analyst at CryptoCompare, wrote in a research note.

Despite the recovery, the cryptocurrency market is still suffering. Both bitcoin and ether have fallen more than 50% this year. Bitcoin had its worst quarter in more than a decade in the second quarter.

Analysts are still not convinced of a significant increase in the short term.

Given the very negative result in the second quarter, it is not surprising that a “relief” bounce has occurred. We believe the market will continue to fluctuate in the coming months, “Moreno said.

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Be vigilant and consult with your financial advisor before making any investment decision. Mirror-Mag can not be held responsible in case of bad investments. Before using a third-party service, you should do your own research.

Thomas Estimbre
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