Since July 20, the value of this flagship cryptocurrency has risen from just under $ 30,000 per coin to over $ 43,380 on Monday. That’s an increase of almost 47% in just 3 weeks. In the same period, the value of one ether increased by as much as 68.7% compared to current prices. It is difficult to pinpoint the cause of the recent gains, but one of the main reasons is the analysis of Motley Fool, which recently discussed the potential emergence of ‘bitcoin, a cryptocurrency backed by the Bank of England. The BTC / USD exchange rate hovers slightly below USD 44,000 on Monday.
Bitcoin (BTC) rises almost 50% after declining in May
Proponents of bitcoin or any other cryptocurrency have long been used to tremendous volatility. Virtual currencies have a reputation for being one of the most volatile assets available to retail investors. So far in 2021, bitcoin has increased by approximately 47.4%. However, its sharp fluctuations also led to declines of more than 50% between mid-April and mid-July.
Bitcoin has been on the bulls wave in recent weeks. In fact, since July 20, the value of this flagship cryptocurrency has risen from just under $ 30,000 per coin to over $ 43,380 today. That’s an increase of almost 47% in just 3 weeks.
In turn, the second largest cryptocurrency in terms of market capitalization – ethereum – has also appreciated sharply in the last few weeks. In the same period, the value of one ETH increased by as much as 68.7% compared to current prices.
What is behind Bitcoin (BTC) increases?
Like “most crypto assets,” this rally is hard to justify. There have been some interesting changes in the world of cryptocurrencies that could fuel a positive mood. Motley Fool recently discussed the potential emergence of Bitcoin, a cryptocurrency backed by the Bank of England.
– Bitcoin has a famous (and perhaps infamous) army of loyal followers. Perhaps many of these “ultra-bulls” were buying cryptocurrencies like bitcoin after dropping below $ 30,000 per coin last month. Historically, investors who “bought a dip” on BTC and other cryptocurrencies in the past had positive returns – wrote Sebastian Fooley of Motley Fool.
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Bitcoin (BTC) hovers above the $ 42,000 support level
BTC / USD rose sharply last week breaking the resistance level of $ 42,000 with force. As a result, a solid base was created, and the above-mentioned level is now local support. The market bulls currently have an open path towards $ 47,555 with a target of a round $ 50,000. On the other hand, only a permanent drop below the August minimum of USD 37,500 would slow down the latest pressure from buyers.