The bitcoin exchange rate exceeds $20,000 during trading on Tuesday, having reached a maximum value in more than a week, but cannot break through the narrow trading range indicated after the cryptocurrency’s sharp fall this summer.
The price of bitcoin, as of 13:40 Kyiv time, rose by 5.69% compared to the closing level of previous trading and amounted to $20.223 thousand.
Bitcoin has been fluctuating between $18,000 and $25,000 since mid-June, following a crash in the crypto market that has depreciated nearly $2 trillion since its peak in November last year, CNBC writes.
The decline in the market was caused by an increase in interest rates by the central banks of the world, aimed at combating high inflation, and a wave of bankruptcies and debt problems that swept through companies in the cryptocurrency sector.
Crypto investors are keeping an eye on changes in monetary policy as cryptocurrencies have been closely linked to the US stock market this year. Rising interest rates put pressure on the S&P 500 and Nasdaq, which spilled over to other risky assets, including cryptocurrencies.
This time, the rise in the cryptocurrency market, which began on Monday, is at odds with the dynamics of the stock market. American stocks continued to fall on Monday, and the Dow Jones Industrial Average ended trading in the bearish trend zone (that is, it fell 20% or more from the last peak) for the first time since the start of the coronavirus pandemic.
However, futures for US indices showed an increase on Tuesday, indicating that stocks may start to win back on the mood of investors to buy on the fall.
The rate of Ether (Ether) rose by 4.79% to $1388.50. On September 15, a cryptocurrency software update dubbed The Merge was activated. The update switched the Ethereum blockchain to a new algorithm, which should drastically reduce the consumption of electricity during mining.
The bitcoin rate on Monday fell to its lowest level in more than a month, ether (Ether) – below $ 3,000.
The pressure on the cryptocurrency market is exerted by the general risk aversion of investors, as well as signals of restrained demand from new investors, Bloomberg notes.
As of 1:45 p.m., the bitcoin rate retreated 3.05% to $39,058. Earlier in the session, it fell below $39,000.
The exchange rate of ether fell by 4.2% to $2916.6.
Technical analysis shows that despite bitcoin’s recent drop, the cryptocurrency is “not yet close to oversold levels” and the nearest support level of $35,000 is likely not to hold, said 22V Research analyst John Rock.
“We remain confident that bitcoin will drop to $30,000,” the expert says.
The cost of bitcoin has fallen by 5% over the past month, and by almost 16% since the beginning of the year.
The capitalization of the global cryptocurrency market, according to CoinGecko, has decreased by 4% over the past 24 hours, to $1.9 trillion.
