Bitcoin Hits $49K
Bitcoin gained more than 5% as a dramatic turnaround in the Turkish lira’s fortunes boosted investor confidence. According to Cointelegraph Markets Pro and TradingView data, BTC/USD jumped overnight as the Turkish lira rose by up to 40% against the US dollar.
The USD/TRY had previously reached all-time highs of around 19, the majority of which occurred in the previous two months. Erdogan had previously spoken out against cryptocurrency in an ironic twist, declaring Turkey “at war” with the industry.
The shift fueled Bitcoin and altcoins alike, with 5% gains seen across the significant cryptocurrency charts.
Today, the Ethereum community brought more excitement as a long-awaited upgrade got a little closer. Ethereum’s value has risen by as much as 4.9 percent in the last 24 hours, and as of 3:10 p.m. ET, it was up 3.2 percent and hovering around the $4,000 mark.
Kintsugi is a proof-of-stake rather than a proof-of-work network, resulting in lower transaction costs and a faster network overall. Without a doubt, Ethereum has the largest and most valuable ecosystem of intelligent contracts and non-fungible tokens today. However, lower-cost cryptocurrencies may threaten this if they gain scale. To counteract this threat, Ethereum is transitioning to Ethereum 2.0 proof of work, one of the most significant steps in that process.
In November, Bitcoin reached a new high of nearly $69,000. It is now worth less than $50,000, dropping almost 30% from its peak. Wall Street defines bear markets as a 20% or more significant reduction from recent highs. However, it’s worth noting that bitcoin is notorious for its volatility.
Professor of finance at Sussex University said she expects bitcoin to fall to $10,000 by 2022, effectively wiping out all of its gains over the previous year and a half.
Alexander warns that bitcoin could crash after a significant price increase, as it has in the past. After reaching a high of nearly $20,000 a few months earlier, bitcoin fell close to $3,000 in 2018. Cryptocurrency supporters frequently assert that things are different this time, with more institutional investors entering the market. One well-known investment case for bitcoin is protecting investors from rising inflation caused by government stimulus. The approval of the first spot bitcoin exchange-traded fund in the United States is a significant development that crypto investors anticipate in 2022.
Even though the Securities and Exchange Commission approved the ProShares Bitcoin Strategy ETF earlier this year, the product tracks bitcoin futures contracts rather than providing investors with direct exposure to the cryptocurrency itself. Futures are financial derivatives that bind investors to buy or sell an asset later and at a predetermined price. Experts say ProShares’ ETF may be too risky for novice traders; many invested in cryptocurrency because it tracks futures prices rather than bitcoin itself.
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