Crypto Price Today: Bitcoin Keeps Going Up

    Bitcoin keeps going up today, the crypto market showed many positive signals over the past 24 hours.

    Amid economic chaos, Bitcoin is holding relatively stable. According to research results by crypto data research organization Kaiko, Bitcoin’s 20-day volatility has fallen below both Nasdaq and the S&P 500 for the first time in two years. Bitcoin price has moved very little over the past three weeks whereas before that, volatility in both the crypto and equity markets hit a 40-year high.

    To tame inflation, the Fed raised its benchmark interest rate by three-quarters of a percentage point, the biggest hike since 1994. Kaiko also said that the gap between Bitcoin and equities’ 30-day and 90-day volatilities has also been shrinking since the second half of September. Both Nasdaq 100 and the S&P 500 have fallen about 10% since the beginning of that month.

    This is the first time since October 2020 that Bitcoin was less volatile than Nasdaq. This is also the first time since August 2020, the world’s largest cryptocurrency was more stable than the S&P 500.

    At the time of writing, Bitcoin is trading around $19.339. According to CoinMarketCap, Bitcoin trading volume reached about 16 billion USD and market capitalization was 367.7 billion USD. Following the upward momentum of Bitcoin, many other cryptocurrencies also have a slight increase: Ethereum was up 0.77%, Binance Coin up 1%, Cardano up 1.48%, Solana 2.52%, Polygon 1.02%, and more. Total market cap today reached 921 billion USD.

    Source: CoinMarketCap

    Head of research at Kaiko, Clara Medalie, said: “BTC volatility has been falling since early July. Crypto trade volumes have held flat despite low volatility, which suggests trading activity has remained consistent. On the other hand, stocks have seen volatility increases “due to a range of factors including high-interest rates, an appreciating dollar, persistent inflation, the energy crisis, and war”. 

    Although the Bitcoin price is currently at $19,000 – a far cry from its all-time high of around $69,000 in November 2021, this cryptocurrency now appears to be acting as a sort of buffer against macroeconomic uncertainties.  The divergence in activity between the crypto market and the traditional market suggests that cryptocurrencies are more resistant to recent macroeconomic fluctuations.

    As reported by CoinMarketCap, Bitcoin has dropped 93% from its 2011 all-time high. Further declines were 84% in 2015 and 2018 and 75% in March 2020. Justin Bennett, a well-known analyst in the cryptocurrency market predicts that the Bitcoin price will soon have a breakout. A small number of investors also think that Bitcoin can be a safe haven when the global economy declines. This could push the Bitcoin price up again. Besides, Bitcoin’s long-term compressed state and investors’ expectations could cause Bitcoin to surge sharply in the coming days. Many professional investors also believe that Bitcoin will bounce back, possibly rising to $29,000 in the short term.

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