After weeks and months, we’ve finally seen movement on the Bitcoin price front. The world’s leading cryptocurrency jumped over $40,000 in the past 24 hours and seems stable at around $42,000 right now. The whole market is green thanks to Bitcoin’s escapades, and the crypto camp has been delighted.
While it’s still a far cry from the record set in November, the leading cryptocurrency has jumped over an obstacle that’s been bugging it for some time. Now that the price has consolidated, it can hopefully reach new levels, with the most optimistic traders and experts believing a bull run is imminent.
Moving in Tandem with Stocks
Early on Tuesday, crypto rose in tandem with stocks, like it does most of the time. Which is good since it shows that the market doesn’t need a particular country legalization for the price to move up. As stocks went up, so did Bitcoin, and with Bitcoin the market turned fully green. Ether is outperforming right now, going strong over $3,000 for the first time in months.
Crypto traders are nervous about the amount of money on exchanges. It could mean that some investors would head to the sidelines. Due to that, Bitcoin might not push past the $40,000 point. If that level breaks, the price drop could be steep. The good news is that both Bitcoin and Ether are up 14% and 18% respectively over the last month, which shows that the market is improving.
Ether’s recent surge is most likely due to the unexpected upgrade known as “The Merge”. It changes the mining process from proof-of-work to proof-of-stake, which significantly reduces the energy consumption. With cryptocurrencies being bashed about not being climate-friendly, such changes are going to get more and more common.
Which is all for the good, of course. Green mining solutions have been proposed by many in the past few years, and if miners find a way for it, it could result in the next crypto revolution.
Altcoins Turn Green Too
It’s not just Bitcoin and Ethereum that are up. The whole market is turning green, with Bitcoin dragging numerous altcoins for the ride. Cardano, Uniswap, Polkadot, and Litecoin are all up by 5% or more. The two most popular meme coins, Dogecoin and Shiba Inu, are up over 2.5%. The market has turned green for the first time in a while to the delight of new and seasoned investors.
Both cryptos and equities rose as investors shook off remarks by Federal Reserve chair Jerome Powell, who said that the Central Bank could be more aggressive in interest-rate policy after sky-high inflation rates. This sent stocks low and the Treasury yields to their highest point in three years.
Given the yields surge, Bitcoin is doing just fine. It remains to be seen if it could push past this price point, which is what many are hoping for. While 2022 isn’t shaping up to be the year of crypto so far, these months could be a turning point that would see crypto prices up.