The price of bitcoin breaks through the $25,000 threshold for the first time since June, but then begins to decline.
A rebound in U.S. stocks on hints that inflationary pressures could be receding has contributed to a general improvement in the cryptocurrency market.
Bitcoin briefly went over $25,000 in June, which was its highest point, but then it dropped sharply because the cryptocurrency is having trouble making any big moves higher.
According to data from CoinDesk, the world’s biggest digital coin went above $25,000 for the first time since mid-June. This happened late on Sunday.
At about 6:05 a.m. ET on Monday, the price of Bitcoin was $24,178.52, which was more than 2% less than it was the day before.
In the last month or so, cryptocurrencies went up because U.S. stocks went up. Digital currencies like bitcoin have moved in a similar way to stock markets, especially the tech-heavy Nasdaq, which was up about 12% in the last month.
After economic data showed that inflation pressures might be easing a bit, investors became more optimistic.
Bitcoin went up about 15% during the same time period, but it is still down about 48% for the year. The crypto market has had a rough few months, with trillions being wiped off its value and a number of players going bankrupt or having trouble getting money.
Since late June, the price of the cryptocurrency has been between $20,000 and $24,000. Even though it has tried to go up, it hasn’t been able to break out in a big way. But now there are signs of a small comeback.
“BTC continues to show signs of bullishness, mostly because higher highs and lows are being made,” Vijay Ayyar, vice president of corporate development and international at crypto exchange Luno, told CNBC.
Altcoins, which are similar to Bitcoin but aren’t Bitcoin, have also been going up in value, which may have contributed to Bitcoin’s rise. Ether went up 56% in the last month, which was a lot more than what bitcoin did.
That’s because investors are looking forward to a major, long-awaited update to the Ethereum network that could make transactions faster. Ether is the currency that is built into the ethereum blockchain.
The last dress rehearsal for the upgrade, which is called “merge,” was last week.
This rise in ether is also making bitcoin go up.
“We’re seeing BTC catch up with ETH because everyone is excited about the merge, which could happen on September 15,” Ayyar said.
