Why Is Crypto Going Up? The Main Reasons Behind Price Booms

Bitcoin "hit $40,000 for the first time in 2021, and every time it was followed by a bull run, so it’s a logical expectation from the markets that another run is on its way," he said. While that uncertainty continues, ethereum could be boosted by the so-called Dencun upgrade (also known as Duncan or EIP-4844). Ethereum has competition from other blockchains such as solana and avalanche due to its relatively slow transaction speed and high costs. Bitcoin has just hit an all-time high of more than US$72,000 (£56,300), pushing past the level of circa US$69,000 where it turned back during its last bull phase in late 2021.

FTX Finds $5 Billion

• This action prompted investors to sell off risky assets such as cryptocurrencies and stocks.
• So, the next time you ask yourself, "Why is crypto going up?", take a moment to DYOR on news about the assets you’re interested in.
• Then the next shoe to drop is the reaction from the Fed as the next FOMC meeting is scheduled for January 24 and 25.
• A nonfungible token, or NFT, is essentially a piece of data that verifies you maintain ownership of a digital item, from a piece of artwork to a clip of a game-winning shot in an NBA game.

The last time around, the rally was driven by low interest rates that encouraged speculative behavior. When the Federal Reserve started hiking rates to curtail high inflation, the momentum ran out, and bitcoin plunged https://en.wikipedia.org/wiki/List_of_countries_by_foreign-exchange_reserves to $16,000 less than a year after hitting records. In the wake of the SEC’s approval of the first U.S. spot bitcoin ETFs, BTC has jumped from under $50,000 at the time of approval to above $70,000 today. Bitcoin’s latest price increase is largely in sympathy with Ethereum, as the second-biggest cryptocurrency received some good news yesterday. Pay attention to market sentiment and any significant developments within the cryptocurrency world. Furthermore, scalability and interoperability are essential aspects of the technological advancements in the crypto space, too.

The Launch of Bitcoin, A Milestone in the History of Cryptocurrency

This technological foundation enhances trust, reduces fraud, and cuts out the need for intermediaries, such as banks. In recent years, one of the key drivers of many "why is crypto going up" moments has been institutional adoption. When the big players, the major financial institutions, and corporations jumped into the crypto game, their influence was undeniable. All in all, crypto’s inherent volatility provides ample opportunities for speculators. Some investors thrive on this volatility, while others may find it too risky. Conversely, when the demand wanes or when the supply of a particular cryptocurrency becomes abundant, prices can decrease.

Which coins aren’t doing well?

This concept would become an important idea for the entire history of cryptocurrency. While the history of cryptocurrency may be relatively short, it’s one of the most fascinating stories of the 21st century. The concept has been around for 40 years, and that idea evolved into something bigger in 2009 through the creation of Bitcoin – the first cryptocurrency that is worth over $70,000, at the time of writing. While your bank may hold dollars on your behalf, you can’t copy those dollars to double your holdings.

Securities and Exchange Commission, or SEC, has asked various issuers for updates related to their spot Ethereum ETF applications. These reports have stoked https://www.investopedia.com/terms/i/investing.asp investors’ optimism for an approval, as many believed the ETFs were headed for rejection due to the seeming lack of interest from the SEC. However, at just over $70,000, it still remains below its all-time high of more than $73,000 set in March. The original cryptocurrency is up nearly 6% over the past 24 hours and 15% over the past week.

Institutional Investment

On November 4th, Bitcoin pushed straight through $14,000 and continued higher. This is significant because Bitcoin’s next resistance point is its previous all-time high of $20,000. At this point, Bitcoin experienced a hard resistance and it failed to push https://momentumcapital.reviews/ through this stage. Her 15-year business and finance journalism stint has led her to report, write, edit and lead teams covering public investing, private investing and personal investing both in India and overseas. She has previously worked at CNBC-TV18, Thomson Reuters, The Economic Times and Entrepreneur. President Nayib Bukele said that using Bitcoin would help Salvadorans living abroad send remittances back home while still keeping the US dollar legal tender.

With a brokerage, however, there is no “other person” – you come and exchange your crypto coins or fiat money with the platform in question, without the interference of any third party. When considering cryptocurrency exchange rankings, though, both of these types of businesses (exchanges and brokerages) are usually just thrown under the umbrella term – exchange. The content published on this website is not aimed to give any kind of financial, investment, trading, or any https://www.tradingview.com/markets/currencies/ other form of advice.

Bitcoin Hit a Record High. Here’s What Might Happen Next

We will continue to monitor the aftermath of the FTX debacle as lawyers attempt to recover funds to repay creditors. Cardano has been bouncing back lately, and the coin is up about 33% for the year. Charles Hoskinson, the Cardano founder, has indicated that an upcoming update for the smart contract blockchain is almost ready.

Bitcoin ETFs cleared for trading include Fidelity, BlackRock

A nonfungible token, or NFT, is essentially a piece of data that verifies you maintain ownership of a digital item, from a piece of artwork to a clip of a game-winning shot in an NBA game. Over the past week, the cryptocurrency market has experienced massive drops, reaching lows not seen in months. We wrote about the Ethereum merge a few months back and continued tracking the price. While the coin is significantly down from its all-time high price of $4,865.57, it has gone up about 12% since the beginning of the year to around $1,412.