The currency has been steadily rising since January when it was trading around $1300 per coin.
Bitcoin prices rose above $20,000 for the first time since November 2018, while Ethereum climbed above $1400 . The excitement reflected in both cryptocurrencies’ gains.
Points to Remember:
Bitcoin has surged by nearly 20% today, indicating strong demand for the cryptocurrency
Cryptocurrencies have surpassed 1 Trillion Dollars in total value
Crypto markets have been underperforming during earnings seasons so far this year
Bitcoin trading volume increased by nearly 20 percent last week.
The cryptocurrency saw $12 billion traded across exchanges worldwide during the seven day period ending Nov. 25th. This represents a significant increase compared to the previous week when Bitcoin trade was worth just under $10 billion.
After a strong rally last week, the crypto markets have been consolidating since then, with the total market cap hovering around $100 billion. The bulls have regained some steam after breaking above key resistance levels, while the bears continue to hold ground below the crucial markers in prices.
The increase in trading volume and the recent bullish momentum are likely due to Hong Kong stocks rising on average by 2%, with futures for U.S. markets jumping as well.
Stock prices are expected to rise today as companies report quarterly results, providing investors with valuable information to invest in dividend paying stocks. Dividend payments are also due over the next couple of weeks, giving traders opportunities to reinvest dividends into the market.
Coinbase has been in the news lately, with leaked emails suggesting the company plans to shut down its US affiliate program soon. The nervous cryptocurrency market hints the exchange might be insolvent.
Coinbase handles withdrawals without any issues, further driving the bull market and helping the cryptocurrency market surge higher.
Should You Buy Bitcoin Now?
As Bitcoin prices continue to rise and the market seems to be trending upward, the question on everyone’s mind is, “Should I invest in Bitcoin now?”
Bitcoin prices could drop back down to around $10K before rebounding in 2020, but don’t expect this price to last too much longer. The cryptocurrency market is recovering and could see a reversal in Q4 2022.
With stocks poised to do well during earnings season, the Federal Reserve is still talking about a 100 basis point interest rate hike which is bound to influence stocks negatively. While Bitcoin has a linear relationship with the stock market, chances are BTC and ETH prices will also suffer during the following global market correction.
However, while this is good news for investors, it does not necessarily mean that the crypto markets are back to normal. The market continues to be volatile and unpredictable at times.