The inflation news and data have been concerning, but Bitcoin seemed to have survived the onslaught. The results of the coin are different from what many expected. On Tuesday this week, the coin traded at an impressive $23,300, representing a 20.8% improvement from the last week.
It has become almost a norm for Bitcoin to recover unexpectedly with industry events. This is mostly related to the fact that traders tend to react to an event they foresee, then it happens.
So good news to traders, Bitcoin is back in business after the shaky market ended, and the price of BTC EUR is looking good.
How did it end here, and what are the prospects now?
The Shaky Crypto Market Is Over
The global cryptocurrency market has experienced dull days, but a few weeks ago, the market started showing signs of recovery. It was approaching the $1 trillion value on July 18, 2022, at a market cap of $998.41 billion. It was more than a 2% improvement compared to the previous day. This development is courtesy of the gains by Bitcoin and other leading coins. These cryptocurrencies have gained as much as 25% in one week.
We are now in August 2022, and it is already several weeks of good showing for Bitcoin, something that hasn’t happened for a while. The months leading to July were all freefall, but a 17% improvement followed this in July. This performance may not look impressive, but it does when you realize it is the highest in 9 months.
Recent Crypto Crash and Effect on Bitcoin Price
The cryptocurrency winter in 2022 was characterized by a big loss of approximately $2 trillion value from the 2021 rally. Bitcoin, being the most prominent cryptocurrency, was expectedly one of the biggest losers in this crash. Since May, BTC has had a serious drop in its daily active address.
There was a notable increase in the exchange outflow and inflow. As of mid-July, the crypto had lost about 70% in value compared to the peak in November last year.
This crash was a bit different from others before, mostly because several events happened together or in the same season. What followed was akin to a pandemic because the events were interrelated. So when the Bitcoin price took a tumble, it was thunderous.
The major reasons for the recent crash are:
- Hike in interest rate by the FED
- The collapse of entities like Celcius Network, a leading crypto lender
- Drop in global markets
Latest Bitcoin Price
For Bitcoin investors, it is good news because the market is experiencing remarkable gains. By the time of writing this, the price of the coin had reached €23,400, a mark that was unimaginable in mid-June. This may be nothing compared to the €66,630 of November 2021; this rally is amazing considering that the coin was trading at €18,600 or thereabouts even a week ago.
Is Bitcoin Ready to Retrace?
Every trader knows about the volatility of Bitcoin. The price movement for this cryptocurrency is never far from mere speculation. Even a few weeks ago, the question of whether Bitcoin and the market, in general, will recover soon, but answers were divided.
Even today, a section of analysts believe that digital currency can offer a measure of protection from stock market slowdowns and inflation. Still, history shows that the coin is susceptible to financial market downturns.
Overall, it appears that the crypto market has already hit rock bottom, given the past events. For instance, the suspension of withdrawals by crypto lenders like Celcius and the collapse of Luna has already happened this season.
With these events still in traders’ minds, and given the volatility of Bitcoin, it may be impossible to tell whether a retrace is imminent. But some analysts believe there are positive times ahead from the point of the coin reaching rock bottom. Indeed, everyone hopes that the turbulence is over.
With the shaky crypto market, it might still be the best time to invest. It still needs some deep analysis and study of the market. Trading is still unimpressive, with investors still weighing the inflation factor in America and globally. However, the truth remains that this business is about taking risks with the desire to make profits.
If you have decided to invest, you may want to know your options. Bitcoin remains the most attractive cryptocurrency in the market, so its price movements always elicit wide attention.