Bitcoin fans rejoice! After a tough few months and an especially tough start to the new year, Bitcoin is finally back up. Well, not the November heights of over $60,000, but the world’s biggest cryptocurrency is now holding it’s ground at over $40,000. It touched $45,000 for a short time earlier this week, and currently yoyos around $43-44K.
Regardless that it’s not the surge everyone’s hoping for, it’s a major step forward for Bitcoin. Prices have been dropping after a record 2021, with investors losing interest and shedding their coins. The dips seem to be over for the moment, even though it’s still not clear what caused the recent surge.
Still 34% from the Highs
Even if it’s back shoulders above $40,000, Bitcoin is still 34% down from its November record highs. Since hitting a price of over $68,000 on November 10, Bitcoin never managed to regain it. It closed the year with a huge drop in the mid-$40,000s, before dropping even further to the mid-thirties. For a moment, it dropped below $30K in early January, but to the delight of many, it managed to climb back.
Of course, it dragged the whole market down with it. Ethereum fell from its record high of $4,891 to sub-$3K. With the recent surge, it has regained a bit of its price too, currently trading for around $3,000. At least for the moment, Bitcoin has managed to weather the storm according to experts. As it regains new levels, and everyone is sure it will, we can expect the price to get back where it belongs.
Since the US Federal Reserve signaled it may crack down on crypto more aggressively, prices have been dropping. Other governments have cracked down on crypto as well. For example, Russia has proposed a ban on crypto mining and trading, while China launched a full-scale ban on crypto mining last year. The good news is that countries such as El Salvador and Turkey are going in the opposite direction, giving Bitcoin fans big hopes.
The high market volatility and unpredictability doesn’t allow experts and traders to predict Bitcoin’s next move. The technical markers are showing promise and the climb over $40K is a great signal. We’ve seen earlier what Bitcoin can do once it picks up steam. With many countries embracing crypto instead of rejecting it, we could be in for exciting times ahead.
Companies embrace it too. Just look at Tesla. It has around $2 billion in Bitcoin (and counting), and its CEO Elon Musk is a big fan of cryptocurrencies. With the metaverse in play too, the future is certainly bright for Bitcoin and the bunch.
But before that, investors are hoping to see the recent surge continue. Bitcoin has regained critical levels over $40,000 at the moment, and will undoubtedly rise higher. It’s just a matter of time and optimal market conditions. Now that the price is finally up, investors will move back in, hopefully result in another price rise, this time over $50K.