In this article, we will discuss is crypto going up. The cryptocurrency market is rebounding today as the price of Bitcoin topped $24.000 for the first time in weeks, Ethereum rose above $1.500 for the first time since the post-merge fallout, and the overall market topped $1 trillion after three weeks under that mark.
Is Crypto Going Up?
The price of Bitcoin (BTC) has been on a wild ride this week, thanks to the fall of Sam Bankman-Fried and leading crypto exchange FTX.
As the FTX saga unwound this week, BTC plunged 25% from Monday morning through Thursday evening. But since last night, the leading crypto has bounced 10% higher, possibly on wider market optimism that peak inflation has arrived.
Ethereum (ETH), the world's second-largest cryptocurrency, has followed a similar price trajectory this week. ETH's has seen a steeper decline from Monday morning to Thursday evening, down a total of 32%. Since last night, ETH has bounced approximately 15% % higher.
Payment companies like Square (NYSE: SQ) are working toward a decentralized finance (DeFi) business model. Then there are the Wall Street giants like BlackRock (NYSE: BLK) and JP Morgan Chase (NYSE: JPM). Leading up to crypto's 2020 surge in value, institutional investors made up less than 10% of all DeFi transaction volume. In the second quarter of 2021. they make up 60% of that volume.
The big boys are taking a real shine to crypto these days. That's likely to make prices even more competitive going forward. And among the two biggest coins, Ethereum is getting the most attention from traders... At least for now.
Then there was an announcement that went under the radar of many crypto traders. A group of some of the leading Ethereum-based DeFi projects banded together to form a “global crypto organization” with the goal of bringing DeFi to six billion smartphone users around the world. While partnerships built around decentralizing something might seem like an oxymoron, in this case, it seems to make a lot of sense. And is yet another catalyst behind the question why is crypto going up.
This project, called DeFi for the People connected the likes of Aave, SushiSwap, Curve, PoolTogether and Celo to help raise awareness of DeFi through $100 million in grants and incentives. And it couldn't have come at a better time.
What Does Bitcoin's Bounce Mean for Investors?
The big question facing investors is whether this is yet another sign that the Bitcoin bottom is in or if the refuge is merely a dead cat bounce—where prices temporarily rebound amid a longer-term negative trend, only to resume the downward fall after that.
While the bounce has provided a welcome reprieve, the reality is that we are in an unprecedented territory regarding the geopolitical climate, rampant inflation, and the Fed's stance on interest rates.
Anyone familiar with the industry knows that even at the best of times, predicting the short-term price action of digital assets is near impossible. That holds particularly true in this market environment.
Bottom Line
Crypto is the very definition of a headline-driven market. And of late, the headlines have been good. They've been the kind of headlines that sent Bitcoin on a 275% rise in value last year. .
