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The crypto market cap added over US$50 billion in a day as bitcoin spiked above US$20,000 and ETH is up 9%.
Bitcoin was trading at US$21,130 at 12:30 p.m. on Tuesday HKT, down by 3.3% in the past 24 hours, according to data from CoinMarketCap. The price of Ethereum fell by 5.5% in 24 hours to US$1,430. The Federal Open Market Committee, set to meet on Wednesday and Thursday, is expected to raise interest rates by 75 basis points for the second straight month. The U.S. Consumer Price Index jumped 9.1% in June from a year ago, recording a four-decade high. Economists are predicting a slower pace of interest-rate increase after the anticipated increase this week, according to a Bloomberg survey.
Bitcoin is getting close to US$22k
As the bulls were getting more excited about the prospect of bringing down the US$25,000 line as well, though, the situation changed. The cryptocurrency lost over US$2,000 in a day after Tesla sold off most of its BTC holdings in Q2. Initially, the asset recovered some ground and entered the weekend at US$23,000, where it spent most of the following two days.
However, the bears regained control over the market hours later and pushed BTC south hard. As a result, the cryptocurrency fell by over US$1,000 and dumped to a 6-day low of under US$22,000. As of now, bitcoin still struggles there, and its market cap has declined to US$420 billion.
Will Bitcoin reach US$500k in the future?
Bitcoin broke out of a narrow trading range and is slowly absorbing this year’s losses, deepening anticipations that the biggest digital asset will soon extend its dominance to quickly move past the US$50k range, within the next months. Meanwhile, skeptics and investors who are still residing within the ‘extremely fearful’ position continue to believe that the crypto will decline below US$10k, before even reaching the US$30k mark. But crypto investors should not be skeptical about this price rally. Instead, investors should be extremely cautious before investing in BTC this month.
Billionaire Mike Novogratz has been extremely optimistic about the crypto’s price actions. Even the founders of the major cryptocurrency company, Gemini mentioned that Bitcoin’s actual acceptance has not even begun yet, it is quite obvious that once governments and skeptics start to truly see the advantages that the crypto has to offer, Bitcoin will gain the potential to skyrocket, hence, surging up as high as US$500,000. Besides, experts believe that Bitcoin’s anti-inflationary feature would prove to be immensely valuable at this point in time, which would in turn enhance its market dominance.
Well, Bitcoin is still a risky asset and investors would have to endure its volatility as long as they are a part of the crypto market. Since its inception, Bitcoin has been one of the toughest and most trusted cryptocurrencies. It has now become a household name, in fact, sometimes people refer to Bitcoin while talking about cryptocurrencies. Currently, Bitcoin’s adoption rate has outpaced every other cryptocurrency, hence, it is quite easy to predict that Bitcoin will continue to dominate the crypto market. But with its current volatility, it is quite difficult to say if Bitcoin will truly reach US$500,000 or not, but investors are quite optimistic about its current price movements and are ready to experience massive profits.