World’s largest digital currency by market capitalization Bitcoin Bitcoin/USD After completing the longest stretch below that level since the token, it crossed the psychologically significant $20,000 level on Tuesday. Crossed for the first time in late 2020.
Bitcoin rose about 4% to $20,185 on Tuesday.
For over three weeks, the token has been trading below $20,000, deviating from the coin’s normal volatility.
What happened: Other digital assets are also on the rise, ethereum Ethereum/USD It climbed 10% to a monthly high of $1,476.
altcoins such as Solana Sol/US Dollar When dogecoin Doge/US Dollar has also made significant progress.
Despite progress Bitcoin continues to fall for months This is because the central bank is raising interest rates in an attempt to keep inflation from rising.
Bitcoin is still down about 67% from the all-time highs seen in November 2021.
Market background: The cryptocurrency rose in the US market on Tuesday as investors weighed the risk of conflicting company news with global growth.
New economic data show declining consumer confidence AmericaThis suggests that buyers may cut back on spending amid recession fears and aggressive interest rate hikes.
Bitcoin’s strong ties to risky assets such as tech stocks have dashed hopes that it could be used as an inflation hedge.
For most of the year, the coin has kept pace with the US market.
On Tuesday, the 60-day correlation coefficient between bitcoin and bitcoin S&P 500 The number of contracts is about 0.63, a factor of 1 indicates that the assets are moving in lockstep, and a value of -1 indicates that the assets are moving in opposite directions.
Meanwhile, according to a well-known quant analyst, amid uncertain market conditions, two large Bitcoin stakeholders are accumulating large amounts of Bitcoin at lower levels.
A Whale Saving Bitcoins: Ki Young JuThe CEO of analytics business Crypto Quant has told his 308,400 Twitter followers that wealthy investors are actively buying bitcoin on major digital asset exchange Binance.
“Whales are accumulating BTC on Binance. Since Bitcoin’s price reached the $20,000 level, Binance’s spot trading volume dominance has skyrocketed and is now at 84%. Second largest Coinbase, with 9%, we don’t know at the moment if these whales are institutions using prime brokers or Crypto OGs (original gangsters),” he said.
He added that whales have taken over the Bitcoin futures market.
“BTC futures traders are almost whales right now. The average amount of bitcoin deposits from other exchanges to derivatives exchanges is relatively large, reaching a five-year high,” he said.
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