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Bitcoin rises above $23,000: all you need to know

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  • Bitcoin rose above $23,000, and this happened after the United States Federal Reserve increased the interest rates.
  • The cryptocurrency market has suffered a significant loss as billions of dollars have been wiped off due to macroeconomic issues (which have had disadvantageous impacts), and several companies have crashed (this article will give some examples below). Tesla announced that it had sold a significant 75% of all its BTC (Bitcoin holdings), which goes a long way to show how the market crash has affected all.
  • Bitcoin is the world’s largest cryptocurrency that has been trading between a range of $20,000 to $24,000 since the middle of June. This is because the brutal market crash was very disadvantageous, and Bitcoin lost 50% of its value.
  • An equity rally happened on Wednesday, triggered by Jerome Powell’s statement during the United States Federal Reserve meeting.

On late Wednesday, the 27th, Bitcoin jumped above $23,000, succeeding stocks higher. This was after the United States Federal Reserve raised the interest rates but at the same time proposed the pace of hikes could be slow.

Bitcoin, the world’s largest cryptocurrency, as we all know, has been trading between $20,000 to over $24,000 since the middle of June. This was a result of the brutal crash that happened this year which wiped off 50% of its value.

Since then, the cryptocurrency market has had to go through billions of dollars being wiped off because macroeconomic issues have caused a lot of damage and led to a significant disadvantage. Also, different companies have crashed.

Cryptocurrencies have been somewhat related to the United States stocks, the Nasdaq in particular, which jumped 4% on Wednesday. According to CoinMetrics, people still traded Bitcoin at $23,740.00 on Thursday at around 4:00 PM ET, which is up about 4.4%. CoinMetrics also stated that other digital coins rose – Ether increased and became about 8.43% higher, which sets it at $1,722.23.

Bitcoin rises above $23,000: what caused it

The Federal Reserve increased its benchmark interest rate by 0.75 percentage points on Wednesday, the 27th. This action was taken because it looks like it will be able to tackle the rampant inflation without the economy falling into recession. But, Jerome Powell (the Central Bank’s Chairperson) proposed an idea – he suggested that this could lead to the speed of rate rises becoming slow.

Jerome Powell’s suggestion triggered an equity rally on Wednesday and made it to Asian and European trading on Thursday. Antoni Trenchev, the co-founder of Nexo (a cryptocurrency wallet), said in a research note that the conclusion of the Federal Reserve’s meeting on Wednesday has opened up an opportunity for a Bitcoin relief rally since everyone has only two months until policymakers will next ponder on and reach a decision on monetary policy.

Antoni Trenchev also stated that the next twenty-four hours would serve as an actual test of Bitcoin’s strength that has just been found after it portrayed indecision and indifference at the stellar United State’s inflation data for this month. Also, Bitcoin did not flinch or drawback when Tesla issued a statement to the public that most of its BTC (Bitcoin) holdings had been sold – Two weeks ago, Tesla said that it had sold a major 75% of its BTC (Bitcoin) holdings.

Many failed attempts have been made to stage a sustained rally by Bitcoin this month. But once again, they are attempting to put on a sustained rally. As stated above, Bitcoin is the world’s largest cryptocurrency that has been trading between a range of $20,000 to a little bit over $24,0000, and this was a result of a crash in the market that led to Bitcoin losing 50% of its value.

Moving on, we can now see that, indeed, the cryptocurrency market has lost billions of dollars because macroeconomic issues have made a very disadvantageous impact. Not to forget how several companies have crashed – the Hedge Fund Three Arrows Capital and the Crypto Lending Platform Celsius are two prominent and notable examples as they both filed for bankruptcy. This has affected many investors as it has equally brought them down too.

Crypto market players spoke to CNBC, and they mentioned that they are unsure whether the shakeout of Bitcoin is over. They are quite uncertain about if they will have to go through another cryptocurrency market crash that would lead to a significant loss of value and affect every Crypto market player.

Do you think the Bitcoin shakeout is over as a crypto market player or an onlooker? Is there a possibility that there will be no significant cryptocurrency market crash which will lead to a loss of value?

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