Bitcoin Rose for the First Time in Almost a week
The world’s largest cryptocurrency rose for the first time in six days, as its price climbed above $52,000. Bitcoin has the potential to reach even better results. In a rally that appeared to start around 22:00 UTC on April 25, bitcoin bounced back off a seven-week low of around $47,655. It reached some of its largest hourly gains in two days.
Other main cryptocurrencies also strengthened their positions, gaining an average of 3.7% on the day. Uniswap’s UNI token reached some of the biggest gains, rising more than 14% over the last 24 hours.
Bitcoin was changing hands at around $52,100 as of 2:16 UTC on Monday. The buyer volume reached the highest hourly levels in several days. Traders are speculating whether the world’s most famous cryptocurrency might be correcting. Prices fell last week by the most since February due to concerns regarding President Joe Biden’s proposal. His proposal to raise the capital gains tax on cryptocurrencies and other investments triggers this issue.
According to bitcoin’s relative strength index, the cryptocurrency is attempting a daily timeframe bounced from levels of oversold at 30.00 on April 25.
Bitcoin, China, and other factors
Last week, bitcoin was struggling to cope with challenges, and it is hard to determine the main issue. However, a blackout caused by a power plant in Western China was one of the biggest challenges. That incident had a serious impact on bitcoin mining. China plays a very important role when it comes to cryptocurrency mining. Even a minor accident has the potential to affect the price of the world’s largest cryptocurrency.
One of the main shortcomings of cryptocurrency investing is its high volatility. Many investors are not scared of volatility, but bitcoin is a different story. As when it goes the opposite direction, it gets harder to control the situation.
Bitcoin first came to the market more than a decade ago. Its price rose from just $15 per coin to more than $60,000 in intraday trading just under two weeks ago. The value of the cryptocurrency market is more than $2 trillion, including non-BTC currencies. One day, the current largest cryptocurrency will represent a smaller portion of the overall market than it is now.
However, at the moment, it drives everything. If it sells off, everything sells off. And the longer it sells off, the stronger the headwinds for other cryptocurrencies.
- Trading Instrument
Get the latest economy news, trading news, and Forex news on Finance Brokerage. Check out our comprehensive trading education and list of best Forex brokers list here. If you are interested in following the latest news on the topic, please follow Finance Brokerage on Google News.