Bitcoin turns positive and recovers from its bottom
Following a plunge in global stock markets and the sustained rise of the US dollar, Bitcoin plummeted below $19,000 on Wednesday morning, at one point reaching its lowest level since June. The crypto market’s value went below $1 trillion as digital coins declined across the board. Bitcoin was last trading slightly higher at roughly $18,939.34. Ether, which has outperformed bitcoin recently, was trading below the flat line at $1,572.21.
Markets anticipate future interest rate increases. The Fed’s policy tightening has strengthened the US dollar, weighing on risk assets. The yield on the 10-year US Treasury note has also risen.
The most often asked question by investors is when the market cap of Ether (ETH) will surpass that of bitcoin (BTC), according to the memo. What is more vital for digital assets is that they become an “innovation-driven, structural trend rather than a macroeconomic asset class.” According to the team, Ether represents this “innovation-crypto,” If it successfully establishes the blockchain digital economy, ETH might be embraced as digital money.
Bitcoin has moved in association with stocks, so if markets fall, so does the cryptocurrency. The cryptocurrency market has been beating this year, with roughly $2 trillion deducted from its value since its peak in November. Bitcoin is around 60% off its November record high of $68,991.90.
The sell-off has been triggered by a difficult climate for risk assets and crypto-specific difficulties such as failed projects and bankruptcies that have spread throughout the industry.
Since June, Bitcoin has traded in a narrow band of $18,000 to $24,000. Ether and other so-called altcoins, or alternative coins, have outperformed bitcoin. Since both cryptocurrencies hit a low in June, Ether has surpassed bitcoin.
Ether is the Ethereum network’s native cryptocurrency. This month, Ethereum is planning a massive update known as the merge, which supporters claim would make the network more efficient, attract new investors, and generate higher payouts.
