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Bitcoin Holds Above $20,000 After Week of Forced Crypto Sale | Electronic money


Bitcoin rallied as much as 1.6% in Asia in an expected sign of recovery from last week.

The cryptocurrency shows signs of an expected recovery from last week when Bitcoin held above $20,000.

Bitcoin was up 1.6% on Tuesday in Asia and was trading at $20,665 as of 8:42 a.m. in Tokyo. The MVIS Cryptocompare Digital Assets 100 Index gained 1.5%. So-called altcoins like Solana and Polkadot are among the bulls.

After a volatile week that saw Bitcoin plunge below $20,000 for the first time since 2020, some market watchers are pointing to possible signs that the price has bottomed out – at least. especially at the moment. In a report Monday, Glassnode said actual losses on Bitcoin holdings hit a record $7.3 billion last week.

“With sellers forced to drive much of the selling recently, the market may begin to watch to see if signs of seller burnout emerge in the weeks and months to come,” the report said. or not,” the report said.

Marcus Sotiriou, an analyst at GlobalBlock, pointed to Glassnode data to say that a “macro bottom, or temporary bottom, could close,” according to a note on Monday. Altcoins are not subject to “liquid flows” like Bitcoin and Ether, which are primarily used as collateral for leveraged positions, he said.

Any market rally could be fleeting, with central banks around the world scrambling to squeeze out liquidity to combat runaway inflation.

The Bitcoin T3 Volatility Index, a measure of the token’s 30-day expected volatility, has rebounded to mid-May highs, when the collapse of stablecoin TerraUSD rocked the market.

“The toxic combination of bad news cycles and higher interest rates has hurt the crypto market,” said Feroze Medora, APAC trading director at Cameron and Tyler Winklevoss crypto platform Gemini. and we can expect more volatility in the weeks to come on Monday.

Currently, Bitcoin has seen two “separate capitalization periods” since it peaked near $69,000 in November, Glassnode said. First triggered by the crash of stablecoin TerraUSD in early May and last week fueled by “a massive write-off across the industry, both on-chain and off-chain.”

Existing Bitcoin and Ether trading patterns suggest that some major crypto holders are “pursuing liquidation to profit from coercing other players,” said Chiente Hsu, chief executive officer of the company. Decentralized financial platform ALEX said.

Adding to the uncertainty is the enormous pressure on DeFi applications. Their popularity as a source of high yields has skyrocketed as pandemic-era stimulus has fueled a record crypto boom.

Now, they are forced to take unprecedented measures to protect themselves against the chain reaction of liquidation. Cryptocurrency lending platform embedded in C Network Ltd. said on Monday that it needed more time to stabilize its liquidity and operations after freezing deposits in early June.



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