After yesterday’s (Feb. 4th) rally, the price of bitcoin has hit a new all-time high, at $34,141.00, according to data from the CoinDesk Bitcoin Price Index (BPI). For perspective: the digital currency has gained more than 17% in the last week alone, and the BPI shows that bitcoin is now valued at $3.4 billion.
Bitcoin, the original cryptocurrency, saw a big bounce in price on Tuesday, with the price of one unit of the digital currency rising by more than $3,200 in the span of 24 hours.
After a dramatic fall to a low of $3,300, Bitcoin has recovered to almost $33K today. Meanwhile, the cryptocurrency’s value continues to increase as more and more people open up wallets and let their coins roll.The 22nd. In June, cryptocurrency investors found no solace when the price of bitcoin (BTC) dipped below $30,000 for the first time since January, causing panic among less experienced market participants who have yet to experience a full market cycle.
Although bitcoin has been under increasing pressure from various sources since early May, the recent wave of selling is largely due to the capitulation of Chinese miners who were forced to abruptly cease operations.
Data from Cointelegraph Markets Pro and TradingView shows that after dropping to $28,800, the price of bitcoin has moved back above the $30,000 mark and currently stands at $32,600.
4 hour chart BTC/USDT. Source: TradingView
The sharp rise came after comments from Brian Nelson, the current nominee for Treasury Department undersecretary for counterterrorism and financial crimes. Nelson said he plans to make the introduction of new regulations for cryptocurrencies a priority if he is confirmed in office.
China’s suppression of mining causes turbulence inmarket
Elie Le Rest, partner at digital asset management firm ExoAlpha, has spoken out about the pressure on bitcoin and the cryptocurrency market in general. Rest told Cointelegraph that Chinese market players sold out last month.
The Rest also noted that the timing of Grayscale’s exit led to increased selling pressure, resulting in panic selling by less experienced traders in the market.
The rest said,
While new entrants to the cryptocurrency market see their profits and capital wiped out by waves of selling, new entrants suffer losses because they can no longer tolerate such negative volatility.
Because of this pressure, Le Rest believes that the market could hover between $25,000 and $35,000 in July, and the generally low volume in August could accelerate this downward trend or strengthen the upward trend.
The reason for today’s rise was given by David Lifchitz, managing partner and chief investment officer of ExoAlpha, who noted that the upward movement seen on the 22nd. The activity seen in the market in June seems to have drawn a line in the sand given the rapid rise of BTC to $29,000 and Ether (ETH) to $1,700.
Related: Bad decision? Bitfinex bears closed a short bitcoin block before it dropped below $32,000.
Lifchitz cautions against caution, however, because the volatile nature of the cryptocurrency market makes it difficult to determine a bottom.
Mr. Leafchitz said:
However, it is still too early to say whether this is a bottom or just a temporary level before a further decline. The lack of a growth catalyst (apart from a few contrarian oversold indicators) remains the main obstacle to the cryptocurrency’s recovery….. I’ll call Mr. Musk. I’ll call Mr. Musk.
Altcoins suffer double-digit losses
The 22nd. In June, the altcoin market followed bitcoin’s lead, with most tokens suffering double-digit losses as traders rushed to safe and stable currencies.
Daily indicators for the crypto-currency market. Source: Coin360
The price of Ether was able to recover along with the price of BTC, erasing the 15% correction and bringing the price back above $1,900.
The two tokens that managed to rise above the market turmoil and post positive daily growth were Livepeer (LPT), which rose 15%, and Celo (CELO), which rose 9%.
The total cryptocurrency market is now $1.303 trillion and bitcoin’s share is 47.1%.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Cointelegraph.com. Every investment and every transaction involves risk. So you need to do your own research before making a decision.For those who feel that the Bitcoin price is too high, there is still a place for Bitcoin to go. In the early hours of Tuesday morning, the price of Bitcoin reached $3,500, a new record high. The last time Bitcoin topped $3,500 was in mid-April, and the cryptocurrency has appreciated approximately 30% since then. While the current price is still too high for many investors, it could change quickly.. Read more about bitcoin price prediction and let us know what you think.
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