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Why has the price of Bitcoin suddenly increased? — B…

Why has the price of Bitcoin suddenly increased?  — B...

The crypto asset market rallied on Wednesday (23/11/2022) after being stalled for four days since last Saturday. Bitcoin (BTC) is up 6 percent, while Ether (ETH) is up 7 percent in the last 24 hours.

Crypto exchange failure cases FTX which are being investigated by authorities in various countries causing a chain of crypto company bankruptcies wiping out $250 billion worth of market capitalization.

Why did the price of Bitcoin suddenly jump?

The capitalization of the crypto market fell from 1.1 trillion US dollars to 855 billion US dollars due to investor panic. Despite this, investor sentiment appears to have started to pick up with the emergence of renewed buying interest due to significantly reduced asset prices.

Investor bullish started entering the crypto market on Tuesday (November 22, 2022), raising the prices of BTC and ETH. The capitalization of the crypto market rose to 862 billion US dollars, an increase of 6.18 percent in 24 hours.

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Crypto markets are growing along with traditional stock markets showing signs bullish. The Dow Jones stock index rose 400 points as investors expected the US central bank to ease interest rates.

The S&P 500 rose 1.36 percent to 4,003, its first close above the 4,000 level since last September. The NASDAQ Composite index also rose 1.36 percent and reached 11,174 points.

The crypto market is correlated with the stock market so BTC and ETH also rallied amid positive sentiment from global investors, answering the question of why the price of Bitcoin suddenly jumped.

Despite this, the crypto industry still faces major hurdles after the FTX bankruptcy. One by one, various crypto companies began to admit liquidity difficulties due to stuck funds in the exchange carried out by Sam Bankman-Fried.

Institutional investors Genesis are ready to file for bankruptcy if they do not receive US$1 billion in emergency funds. Crypto analysts see this as a major threat to BTC’s price.

Guru watcher reported that consulting firm Web3 BDC interviewed 53 crypto executives regarding the price of BTC. Most analysts believe that BTC can continue the trend bearish for the coming months.

According to the survey, the majority of respondents predict BTC can find a low price in the range of 11 thousand US dollars. Almost 30 percent of respondents said that this level is low.

If BTC reaches the price of US$11,000 according to the analysis, BTC will decrease by about 30 percent from the current price of US$16,751 and decrease by 85 percent from the highest value of all time 69,044 US dollars. [ed]

Bitcoin Evolution

 

Bitcoin Evolution

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