Blockchain

Crypto Market: What Made Bitcoin Grow?

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Investors found themselves in a state of mild euphoria when Bitcoin suddenly switched to a sharp increase. In a matter of hours, its price jumped by 12%. At the beginning of the working week, the reference cryptocurrency is trading around $38,600.

It is worth noting that along with the price increase, trading volumes also showed an impressive momentum, which further strengthens the current dynamics. Of course, all eyes are now focused on the most important threshold technical and psychological level at $40K. However, you need to understand that the resistance will only increase as you approach the round value. Now is the beginning of a new working week, and now institutional investors have to say their say.

The crypto market will depend very much on the initial reaction of large capital.

Market participants are in the search mode for the trigger of such a sharp dynamics, however, reports are already appearing that the reason for the sharp growth could be the massive liquidation of short positions by almost $ 900 million. In addition, there were unconfirmed rumors (which, most likely, will remain rumors) about the readiness of Amazon (NASDAQ:AMZN) to accept payments in cryptocurrency.

After Tesla (NASDAQ:TSLA) and PayPal (NASDAQ:PYPL), the participants of the crypto market dream of the largest trading platform supporting bitcoin. However, in fact, large retailers, as well as technology giants like Apple (NASDAQ:AAPL), are simply deterred by the volatility of cryptocurrencies, as well as possible legal difficulties.

In fact, holders of cryptocurrencies in developed economies can already enjoy the benefits of settlements in digital currencies. For leading economies, bank crypto cards linked to a wallet with digital currencies are available. Within the framework of these wallets, you can make an instant conversion from bitcoin to any digital assets, or pay with the first cryptocurrency.

Therefore, the expectation of a direct statement from one of the largest retailers is rather an important psychological nuance. Of course, it would be more profitable and easier to pay the same USDT directly or with bitcoin, but there is already such an opportunity now.

The total capitalization of the crypto market after the bitcoin jump and the subsequent growth of altcoins increased by $ 140 billion. The greed and fear index for bitcoin and the largest cryptocurrencies switches to the “fear” mode, losing the prefix “extreme”. And, it would seem, this is the moment that enthusiasts were waiting for, bears were afraid of, and on which large capital was betting. Nevertheless, it is worth taking extra care now, since the market does not play by the rules of the majority. In addition, levels around $40K may be attractive for profit-taking by those investors who entered the market around $20K and did not wait for growth above $65K.

Low trading volumes in recent years also set up caution, as they indicate the ease of market manipulation with relatively small amounts of capital.