Bitcoin is back trading above $40,000. The past few months have been quite a tough one for Bitcoin. The coin which was trading at an all-time high of $65,000 plummeted more than half the all-time high figure. For weeks, Bitcoin traded between $30,000 and $40,000 and even fell below $30,000 twice.
Trading at $45,000, Bitcoin is back above $40,000 and is up more than 8 percent over the last seven days. Irrespective of the lows that it has encountered, Bitcoin remains the biggest cryptocurrency in the world with a current market capitalization of $841.17 billion. Hitting $45,000 has helped boost the confidence of analysts, investors, and traders as they believe that the market is back strong and ready to break new grounds.
Bitcoin’s woes started after EV company Tesla pulled the brakes on the flagship cryptocurrency as a means of payment for its products. This caused the price of Bitcoin to fall. Another major factor that contributed to Bitcoin’s fall, making it lose more than 50 percent of its value, is the crackdown actions against Bitcoin trading and mining by regulators in China. More than $300 billion worth of cryptocurrency was wiped off the market as a result of these crackdown actions and China which was once a haven for Bitcoin mining has become a place of peril for it.
Bitcoin trading at $45,000 is, therefore, an indicator that confirms the continuation of the market bull run. Bitcoin trading at $45,000 provides traders and analysts with a ray of hope and optimism about the crypto market. Predictions have started to come up with analysts forecasting that before this month comes to an end, Bitcoin would be trading for at least $50,000.
Talking about Bitcoin rising about $40,000, Marcus Sotiriou; a trader at GlobalBlock said that “BTC is also showing strength, which is expected to carry on next week, as it broke out of a downtrend today which dated all the way back to the previous all-time highs in April.
“The market has been oversold for quite some time. I think we are resuming the bull market in the coming months”, Kevin Kang, founding principal of crypto hedge fund BKCoin Capital said.
In an email statement, Paolo Ardoino, the CTO of Bitifinex said that “a mood of optimism appears to have returned to cryptocurrency markets. Still, the turbulence that we’ve seen in crypto markets over recent weeks is unlikely to subside.”
Bitcoin was trading at $45,002 at the time of writing this article.