There has been a Bitcoin price rise on Sunday evening topping $39,000 for the very first time since the middle of June as the sentiments changed bullish that is followed by the latest sell off.
According to data by Coindesk the Bitcoin price, today is around $38,059.54 at 11.08 p.m ET, and the Bitcoin price in India is 28,52,686.51 Indian Rupee, which is up by nearly 11%from the same time, 24 hours before. Previously Bitcoin has hit a 24 hour high of $39,544.29. Here is some Bitcoin news.
The rally of Bitcoin escalated other digital currencies with Ethereum price rising by 5.9% which is $2,299.55. There is also a rise in the Cardano price. The complete market of cryptocurrency added a value of more than $114 billion in just 24 hours.
The rally came after Bitcoin fell recently below $30,000 after there was a global sell off of the stocks. According to the head of a cryptocurrency exchange firm,
“I think we saw an accumulation period around 29-30K, indicating bullishness and a potential move towards $40K for Bitcoin.”
Musk, Wood, Dorsey In Focus After Bitcoin Price Rise
Recently Twitter CEO Jack Dorsey, ARK Invest CEO Cathie Wood, and Tesla CEO Elon Musk recently had a conversation during a minutely watch conference on Bitcoin known as “The B-Word”.
Musk affirmed that Tesla would soon begin to accept Bitcoin for the purchase of vehicles as a big share of Bitcoin mining changes to renewable energy. In May, vehicle purchase through Bitcoin in Tesla was suspended because of the “rapidly increasing use of fossil fuels for bitcoin mining.”
Mining cryptocurrency is an energy intensive process of formulating new coins that involves solving complex mathematical problems. It requires a huge computational power and that power consumes a lot of energy. According to Alex Brammer from Luxor Mining, which is a digital currency mining pool that has been created for advanced miners,
“The Chinese trading day has opened up, and the Elon/Jack/Cathie talk was super bullish.”
More than $700 million worth of Bitcoin has been liquidated on Monday. This is the highest of any day in the last 3 – 4 months. As there was a Bitcoin price rise on Monday, activities in Bitcoin futures increased. More than 1,000 contracts altered hands in a 10 minutes trading window. As a result of that, volumes in the July front contracts increased by 10 times the average.
Other than this there have been other compelling headlines for Bitcoin that are currently in news. The e-commerce giant, Amazon is looking forward to incorporating cryptocurrency and blockchain experts in their payment area that suggests that it can take a closer look at Bitcoin and other digital currencies. A spokesperson from Amazon said that the e-commerce company is,
“Inspired by the innovation happening in the cryptocurrency space and are exploring what this could look like on Amazon.”
These positive shifts have also contributed to creating a “short squeeze” according to Bradon Arvanaghi who is a Bitcoin mining engineer.
Investors who short Bitcoin are predicting that there will again be a fall in price. But if again Bitcoin price rise takes place these investors seem to cut losses and leave their short position that allows further Bitcoin price rise.
According to the crypto exchange firm head,
“I think the extent of the jump was probably driven by over-leverage shorts.”
Reasons For Bitcoin Price Rise
The price of Bitcoin has increased after a long time and the investors and the crypto experts are seeing hope again for digital currencies. Here are the reasons for the increase in Bitcoin price.
- Digital currencies, especially Bitcoin, are now being thought of as a secure haven asset against the fluctuations and inflation of the market. The present economic and societal climate also brings a condition among the people to hold less cash and protect themselves against the swings of the market.
- The announcement of PayPal is launching its digital currency buying and selling platform changed the game to a great extent. The launch has four highly traded cryptocurrencies, namely Bitcoin, Ethereum, Bitcoin Cash, and Litecoin. PayPal also asserted its plans to initiate digital currency payments.
- Digital currency can be utilized for both a mode of exchange and a store of value. While it has just begun to gain popularity as a legit method of payment, it has also established itself as a new class of asset in the last decade.
In the meantime, some of the issues that have led to the Bitcoin price rise have started to clear up. During the last few months, China has revived its shutdown on digital currencies that are targeted towards trading and mining and is a concern over the carbon footprint of Bitcoin mining and trading are beginning to wane.
Frequently Asked Questions On Bitcoin Price Rise
According to JP Morgan, in the fluctuating digital currency market, there can be a Bitcoin price rise again, if a few basic conditions are met.
According to a Bitcoin price prediction for 2023, the price of Bitcoin will cross the level of $96,000; and grab the market with a steady position. The lowest price of Bitcoin will be nearly $65,000 and the highest price will be more than $82,000 in 2023.
Whenever something puts the long-term future of Bitcoin in doubt, demand is temporarily stopped and a crash initiates. And if the present crash follows the historical pattern then a drop of 80% or more can occur. Bitcoin still has a long way to drop from where it is presently.