For the first time since mid-May, Bitcoin experienced a surge in its value and reached near $48,000, on weekend. But as the weekday arrives, the world’s largest digital asset by market capitalization lost some of its value.
On August 14, the market value of Bitcoin reached $48,126.47, which was the highest since May 17. However, on August 16, the digital coin lost some of its value and now, is being traded at $47,484.
In April 2021, Bitcoin reached the all-time high position at $64,000 but then its value started decreasing and there was a time when it reached below $30,000. In June and July, this digital asset suffered a heavy sell-off, soon after that, Bitcoin started recovering its value in the market.
“I do believe this (bitcoin’s rise) is the result of massive accumulation” when bitcoin was trading around $29,000 to $30,000, according to Vijay Ayyar, head of business development at cryptocurrency exchange Luno.
A report released by CoinMarketCap informed that the rise in the value of Bitcoin helped the entire crypto market to surge above $2 trillion, for the first time since mid-May.
During these summers, the crypto market faced a number of headwinds and China’s upgraded regulations were one of them. Due to the improved regulatory scrutiny of the country, in which many of the crypto mining companies had to shift their business to other countries, the market capitalization of Bitcoin falls below the $30,000 level.
In the meantime, the US Senate passed a massive infrastructure bill without proposing any amendments on crypto tax. That was seen as a blow for the crypto community, but many of its members believe that the bill shows the US government’s growing interest in the crypto industry.
According to Jehan Chu, the counter of crypto-focused venture capital and trading firm Kenetic Capital, these ‘fundamental regulatory roadblocks’ on the crypto industry have ‘clipped the market’s wings’ in the near term.
He further has claimed that soon after the value of Bitcoin reaches $55,000, the investors should expect a significant pullback to sub-$30,000 levels. This will reset the market stage for a long steady march to $100,000 in 2022.
A few weeks ago, there has been a news report about hackers stealing $600 million, which is considered to be one of the biggest crypto heists, till date. But later, the hackers, themselves returned almost all of the stolen money.
Notably, this kind of news should have impacted the crypto industry negatively, instead, the market started growing after that event.
According to Ayyar, Bitcoin is now reaching its resistance level between $48,000 and $50,000.
He mentioned, “I wouldn’t expect bitcoin to run through in one shot.” Adding to that, Ayyar said that if the digital asset does break that level of support then it would definitely reach its all-time high position, again.