After briefly rising beyond $25,000, the price of the largest cryptocurrency by market value has now fallen back below that level.
On Saturday evening, the value of Bitcoin surpassed $25,000, marking a historic moment. This event happened for the first time since June 13 and signified a major milestone. By Sunday morning, it had lost all of its prior gains and had fallen to $24,510 on CoinMarketCap at the time this story was published. This shows that the $25,000 requirement will remain a significant barrier to entry for the most popular cryptocurrency for the foreseeable future.
Bitcoin’s value grew by 5.85% last week, while Ethereum’s value increased by 16%, making Ethereum the second-most valuable cryptocurrency. Due to the imminent shift of the Ethereum network to a consensus mechanism based on proof-of-stake, investors anticipate a rise in the price of Ethereum. Due to the Federal Reserve’s decision to increase interest rates, the key economic indices stayed constant compared to the previous month. This seems to have a balancing impact on price rises. Perhaps this is the reason why bitcoin’s value has been rising lately.
As inflation has soared and the likelihood of a worldwide recession has grown, Bitcoin and the rest of the cryptocurrency market have taken a huge hit this summer, along with more conventional assets like stocks and bonds. In response, the Federal Reserve chose to raise interest rates, ushering in an atmosphere defined as “risk-averse.” To preserve their capital, investors liquidated high-risk technology stocks and cryptocurrencies such as bitcoin.
The worth of bitcoin as a “inflation-fighting” “digital gold” has been scrutinized this year because to its tight correlation with the success of technology stocks.