Crypto Analysis

Bitcoin Rallies Towards $40,000, Crypto Market Back Above $1.5T

Ethereum inflates by 6 per cent; all top 20 cryptocurrencies register significant gains

Bitcoin Rallies Towards $40,000, Crypto Market Back Above $1.5T
Bitcoin Rallies Towards $40,000, Crypto Market Back Above $1.5T

In a dramatic pushup, Bitcoin (BTC) broke the $38,000 mark this morning after hovering near the $34,000 level for the majority of the day. A crazy one-hour early morning today witnessed a gain of 10 per cent (more than $3,000 increase in price) as $100 million worth shorts were liquidated in this period. BTC futures on the Binance exchange spiked to $48,000 levels briefly. Speculations of Amazon enabling crypto payments later this year may have led to this sudden surge.

BTC trade volumes across exchanges grew phenomenally by over 62 per cent today on the back of the rally. BTC closed the day at $38,170, gaining 12 per cent as of 9 am IST.

On the back of BTC's momentum, the global cryptocurrency market cap closed at $1.52 trillion after registering a significant increase of 8 per cent from the previous day marking the highest close in more than a month. Trade volumes jumped by 28 per cent today.

Ethereum (ETH) inflated its gains by over 6 per cent to break above the $2,300, crossing the psychological resistance level at $2,200. ETH has gained 23 per cent over the last seven days and is expected to continue its bull run in the upcoming days if it breaks out above the $2,400 mark.

All the top 20 cryptocurrencies have registered significant gains at day’s close. Dogecoin (DOGE) led the pack with a 15 per cent gain, followed by Chainlink (LINK), Polkadot (DOT), Polygon (MATIC), among others.

BTC's remarkable leg up also increased its dominance to 48 per cent, with a gain of over 2 per cent during the day. If BTC continues to hold above the $38,000 level, it can potentially test its twenty-week SMA (simple moving average) at $43,000 levels in the upcoming days.

Top Gainers today:

  1. Amp (AMP): 49%
  2. BitTorrent (BTT): 22.7%
  3. Zilliqa (ZIL): 20.4%

Top Losers today:

  1. Flow (FLOW): -6.1%
  2. Theta Fuel (TFUEL): -2.9%
  3. Stacks (STX: -1.6%

The analysis includes the top 100 coins only as of 9 am IST

Source: CoinMarketCap

Crypto News at a Glance:

  1. Amazon, the e-commerce giant, is planning to integrate Bitcoin and crypto payments by the end of 2022 according to an anonymous source.
  2. FTX exchange has curtailed its leverage limit to all users from a previous 100x to 20x now amidst growing criticism of margin trading as the major cause of volatility in crypto markets. Binance has also cut back the leverage limit for new users last week.
  3. Aave’s lending platform recently announced that Ampleforth (AMPL), an algorithmic stablecoin with elastic supply, has been introduced in its ecosystem.
  4. China appears to have plans to implement digital-yuan usage during the 2022 Winter Olympics in Beijing.

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