Bitcoin Gains 6%, Ethereum Rises 7% As Crypto Markets Turn Green

Bitcoin and Ethereum are rising after weeks of plummeting.

Bitcoin, the world’s most valuable cryptocurrency by market capitalization, is now worth $21,663, up about 10% in the last week and up 6% on Thursday alone, according to Coincu data. Similarly, Ethereum has seen significant gains, rising to $1,238 or 7% on Thursday and 19% in the last seven days.

The rest of the cryptocurrency market appears to be following suit, with Solana up 4%, Polkadot up 5%, Cardano up around 3%, and Dogecoin up 3.3% in the last 24 hours.

Joe Burnett, a Blockware analyst, has some thoughts about what is going on. He noted Bitcoin’s link with the NASDAQ, which has risen 5% in the last five days, as well as recent selloffs from bankrupt firms such as Three Arrows Capital, which have created a “local bottom.”

Burnett said:

“This forced selling definitely contributed to creating at least a local bottom that the price could move up from,”

He thinks that the Bitcoin mining sector has an impact on the cryptocurrency’s price.

“We’re 30 days into a miner capitulation (according to hash ribbon metric), and there are signs that it is potentially ending soon if the price doesn’t fall further. Miner capitulations add to short term sell pressure as miners liquidate their BTC treasuries to continue their operations.”

During the ongoing crypto winter, many crypto enterprises have declared bankruptcy, there has been a wave of layoffs, and there is a liquidity crisis. Is this quick increase a sign that market worries are fading?

Kraken’s Dan Held appears to believe so, claiming that the “mass contagion” of a continuing domino effect—in which the failure of one crypto company affects another—has been “contained” by FTX, an exchange whose CEO claims he still has billions of dollars to deploy toward ailing crypto companies if necessary.

Similarly, Cubic Analytics analyst Caleb Franzen sees Ethereum and Bitcoin’s 200-day moving average as a gauge that, if the currencies rise above it, may lead to more green for traders.

Others are less certain. Will Clemente, a Bitcoin analyst with mining firm Blockware, highlighted Bitcoin’s 200 week moving average (WMA) of $22,520 as a key statistic. If the price of Bitcoin remains below that level, the price decline may continue.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Patrick

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