The price of bitcoin has jumped to its highest point this year and is currently trading for more than $47,000 per unit. The currency is beginning to show signs of life once again as the asset has surged by nearly $3,000 in just the past day.
Bitcoin Is Beginning to Explode Again
Bitcoin has had a rocky start to 2022. The world’s number one digital currency by market cap spent the first three months of the year meandering between the mid-$30,000 and the low $40,000 ranges while other assets – such as Ethereum, Solana and Cardano – appeared to be passing it by and putting its price runs to shame.
Today, it looks like that poor run is finally coming to an end. The asset is now less than $3,000 from hitting the $50,000 mark, which some analysts say is necessary if bitcoin is going to explode and enjoy the bull run it allegedly deserves. Alexander Mamasidikov – co-founder of the mobile digital bank Mine Plex – is confident that this will happen given the high number of institutional investors and traditional banking establishments that are entering the crypto space as of late.
In an interview, he commented:
The ongoing capital splash into digital currency is a sign that investors do not want to take a back seat in a price movement that could push bitcoin to a height not seen since November 2021.
The currency’s rise to greatness appears to have been sparked by several leading factors. For one thing, Goldman Sachs – a giant in the world of money and finance – announced last week that it was going to be trading bitcoin over the counter, and that clients would soon have access to bitcoin spot trading.
In addition, Russia has stated that it is now looking to sell its oil reserves to countries like India and China for bitcoin due to many opposing nations claiming they will not purchase oil from Russia with fiat. While China has done everything it can to prevent bitcoin from getting any stronger, the statement alone was enough to potentially push the world’s biggest crypto asset above the $45,000 line.
Yuya Hasegawa – crypto market analyst at the Japanese crypto exchange Bit Bank – stated:
From a technical perspective, bitcoin has broken out of an ascending triangle, which signals an upward trend, and likely will continue to rally in the short term.
All Factors Are Against It, Yet It’s Doing Well
He noted a high amount of shorting in the world of bitcoin futures over the weekend and said that more than $70 million in BTC funds were liquidated.
The currency has also shown extraordinary resilience in that recently, the Fed decided to hike rates up, a move that many industry experts said would have negative consequences on the price of BTC. By contrast, the asset still managed to make its way north.