Bitcoin
Will the Bitcoin price rally continue? Signs BTC bubble is about to burst
Within the last couple of days, the number one virtual currency, Bitcoin, appreciated from $6,367 US dollars to $7,420, marking an incredible stride after continuous dips. But many might be thinking if the current BTC bull run is going to continue or end even quicker than it started? We have reasons to believe it will carry on, at least for a while. Let’s discover why.
The force behind Bitcoin’s latest price rise
The proclamation caused Bitcoin’s most recent and most substantial price surge in weeks that the most significant asset management company in the world, BlackRock, was looking into ways to invest in cryptocurrency and blockchain technology.
According to information gathered from Financial News, BlackRock has instigated a working group that has been tasked to focus on ways the company can take advantage of virtual currencies, and whether Bitcoin is a viable investment option, it can look at in future.
Two sources that sought anonymity disclosed to the media that a team has already been assembled from different departments of the business to examine the structure of virtual currency, Bitcoin, and the workings of blockchain technology. Part of their mandate is to monitor BlackRock’s competitors and their dealings with cryptocurrency.
The news that BlackRock Inc. is probing the crypto sector is causing excitement on the virtual currency sphere, which in turn is leading to sharp gains for most of the leading virtual currencies in the market. Bitcoin, ranked number one, is particularly experiencing sharp price appreciations since the late morning session, that saw it break through the 6,500 US dollar barrier for the first time since June.
The Monday morning price surge was followed by an afternoon steady price advancement session that pushed the value of Bitcoin to surpass the 6,700 US dollar mark. The virtual currency finished the day at a high of 6,741 US dollar, up from its previous level of 6,357 US dollar. Bitcoins market cap currently stands at around $127 billion.
Is Bitcoin a Bubble?
In today’s world, even those who have not invested in cryptocurrency are starting to keep tabs on the market’s progress. This is because currencies such as Bitcoin have been recording price increments that have left many Bitcoin holders and investors excited about the possibilities of how much its value might climb.
The cryptocurrency market is now getting interests from complete armatures who believe now is the time to invest in the digital asset following the Bitcoin upward surge. However, some analysts are a skeptic of the progress and wonder when the Bitcoin bubble burst.
On whether Bitcoin is a bubble, it is hard to determine if it is considering Bitcoin is an entire industry, this is according to Derek Thompson, a senior economics editor for The Atlantic. However, Derek believes that Bitcoin’s latest patterns are similar to other famous bubbles such as the dotcom bubble that did burst.
The number one ranked virtual currency is an asset that is on everyone’s mouth and thoughts. Investors are making huge life investment decisions based on the value of Bitcoin; they often make remarkable predictions on the future of the digital coin.
The volatility of virtual currencies meets all the requirements to make the whole crypto market to be a bubble. On when it is going to burst remains a mystery, but as things look at the moment, Bitcoin is having a strong breakout that more likely is going to continue for a good period now (at least).
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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.
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Bitcoin price dumped hard on Monday, briefly slipping below $41,000, erasing gains recorded in the previous week. The premier cryptocurrency seems to have exhausted its recent rally propelled by industry vulnerabilities. At the time of writing, the world’s largest cryptocurrency was trading slightly lower at $41,385. Bitcoin’s total market cap has dipped by 2% over the past day, while the total volume of BTC tokens traded over the same period climbed by 58%.
Fundamentals
Bitcoin price has been facing retracements and a rollercoaster over the past few days after recently rocketing to a 20-month peak. On-chain data has suggested that many investors used the opportunity to take some profits, leading to a decline in the asset’s price.
Bitcoin’s price slump is mirrored in the wider crypto market, with the global crypto market cap decreasing by 1.85% over the past 24 hours to $1.55 trillion. The total crypto market volume has increased by 32% over the same period. The Crypto Fear and Greed Index has plunged from a level of extreme greed to a greed level of 70, suggesting a decline in risk appetite.
Ethereum, the largest altcoin by market capitalization, is currently trading at $2,167, down almost 3% for the day. Meme coins have been hit hard by the market slump, with Dogecoin and Shiba Inu down by more than 4% over the last day.
Last week on Thursday, cryptocurrency experts took notice of…
Bitcoin price edged lower on Thursday despite optimism in wider markets on the back of the Fed’s interest rate decision. The flagship cryptocurrency has been consolidating above the critical level of $42,000 after briefly topping $44,000, its highest level in 20 months. Bitcoin was trading 0.71% lower at $42,569 at press time. BTC’s total market cap has increased by more than 3% over the last day to $832 billion, while the total volume of the asset traded over the same period jumped by 22%.
Economic Outlook
Bitcoin price has been trading sideways over the past few days, suggesting a pause in its recent rally towards $45,000. The premier cryptocurrency has decreased by 4% in the past week but remains 15.22% higher in the month to date. The digital asset has staged a significant recovery this year after a torrid 2022 in which a string of scandals, including the collapse of FTX, led to a market meltdown, undermining the credibility of the sector.
The crypto market has been buoyed by the Fed’s latest interest rate decision. The US Federal Reserve on Wednesday held its key interest rate unchanged for the third consecutive time, in line with market expectations. With the easing of the inflation rate, members of the Federal Open Market Committee (FOMC) voted to keep the benchmark overnight borrowing rate in a targeted range between 5.25%-5.5%.
Additionally, the central bank indicated that three rate…
Bitcoin price has been hovering above the $43,000 psychological level over the past two days amid anticipation about the potential approval of a spot bitcoin ETF. The flagship cryptocurrency has climbed more than 16% in the past week and nearly 170% in the year to date. Bitcoin’s total market cap has increased by nearly 5% over the past 24 hours to $858.9 billion, while the total volume of the token traded rose by 43%. The Bitcoin price was trading at $43,914 at press time.
Fundamentals
Bitcoin price has posted significant gains over the past few days, climbing to its highest level since April 2022, before the crash of a stablecoin that started a litany of company failures, pummeling crypto prices. The world’s largest cryptocurrency briefly topped the crucial level of $44,000 on Wednesday amid rising momentum despite being massively overbought.
According to analysts, with no spot bitcoin ETF approvals yet and the halving event five to six months away, the market is riding on FOMO. Capital has been flowing in the Bitcoin market amid enthusiasm that the launches of spot ETF will bring in billions of dollars of new investment into the crypto sector.
Investors have already started providing capital as seed money for ETF products. Notably, a recent report by CoinDesk showed that the world’s largest fund manager, BlackRock, received $100,000 in capital from a seed investor for its spot bitcoin exchange-traded fund…
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