Bitcoin rebounds, leading other cryptocurrencies higher, after its big dip over the weekend
In this article Bitcoin and Ethereum
Modified Date:- Published Date:-Categories: Bitcoins
After a massive weekend rally that took other cryptocurrencies higher, bitcoin climbed on Tuesday after a series of negative headlines pushed the cryptocurrency to new 2022 lows over the weekend.The price of bitcoin jumped more than 7% to $21,617.70 around 10:50 a.m. ET, according to Coin Metrics. Over the weekend, it fell as low as $17,958.05.This was the lowest drop since December 2020. Cryptocurrency companies including Coinbase and BlockFi are laying off employees. Crypto lenders, which promise high yields for users to deposit their digital coins, are raising fears of bankruptcy. Like the stock market, investors are treading lightly around a bear market boom, with some speculating that cryptocurrencies could fall further before seeing a meaningful rebound. "Bitcoin's weekend dip, to put it simply, was not deep enough," said Yuya Hasegawa, crypto market analyst at Japanese bitcoin exchange BitBank."The macro environment hasn't really changed since last week's FOMC meeting: there's still no clear sign of inflation bottoming out and the Fed is still slowing the economy by either failing to reduce inflation or raising rates too aggressively. Could run into recession." Marcus Sotirio, an analyst at UK-based digital asset broker GlobalBlocks, said that bitcoin is facing resistance at the $21,300 level. If the cryptocurrency can overcome that, he said, it could reach the next target of $23,500 as its short sellers get squeezed. A “short squeeze” happens when the price of a heavily shorted asset starts increasing, and short sellers are forced to purchase more of the asset to cover their positions.
The popular cryptocurrency Bitcoin has risen over the past few days in an upward trend as of writing. In fact, it has recently regained its position as the top market capitalization and has ensconced itself amongst other cryptocurrency giants including Ethereum, XRP, and Bitcoin Cash.