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Bitcoin (BTC), the largest cryptocurrency on the market, topped $32,000 for the first time since early May. This shows that a trend reversal could occur in the market as Bitcoin recovers from trading below $30,000 within a few weeks. Despite this recent movement in the market, Bitcoin could face difficulties if bulls do not take control of the market.
Bitcoin Rose Above $32,000
Bitcoin and the entire cryptocurrency market have been on the rise in recent days. Indeed, according to data provided by CoinGecko, bitcoin is currently trading at around $32,200 at the time of writing. Over the past 7 days, Bitcoin has grown by more than 10%, which indicates the great interest of the community in Bitcoin.
When it comes to altcoins, the biggest gain among the top 20 was with Cardano (ADA), which recorded growth of almost 22%, which is more than double the growth of bitcoin over the same time period.
There are several virtual currencies in which losses have been recorded in the last 7 days, including LUNAC, GMT, APE, EGLD, DFI, STX and AVAX; among others. These coins lost more than 8% of their value.
The cryptocurrency market has been in a bearish trend since November 2021, when most altcoins and bitcoins reached new all-time highs. At the moment, this shows a correction against the background of a bear market. This means that in the coming months, we may see a continuation of the bearish trend for Bitcoin and other digital currencies.
In addition, the fall of the Terra (LUNA) ecosystem was one of the main catalysts for the fall of bitcoin and other virtual currencies in early May. Therefore, we also need to keep a close eye on this digital currency and see what happens to it. There is a project to revive LUNA, but it may not have the proper support in the crypto industry.
There are other things to consider when it comes to the price of most virtual currencies. It is important to monitor how traditional financial markets behave and whether they influence investment decisions related to digital currencies. Let’s not forget that there are several companies that have already invested in Bitcoin and can withdraw their funds if they feel uncertainty in the financial markets.
Inflation and interest rate data is also important for understanding what might happen to the price of Bitcoin. Indeed, virtual currency can be greatly affected by possible changes in monetary policy around the world, especially in the United States. Keeping an eye on inflation data and fed decisions is very important for those investors who are closely watching the cryptocurrency market.
Finally, it is very important to understand how the spread of Bitcoin spreads to other countries. After El Salvador, the Central African Republic became the second country to make bitcoin legal tender.
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