Bitcoin Hits Two Week High, Mimicking the Stock Rally
Cryptocurrencies are seeing a significant recovery as investors benefit from the recent stock market rally and increased risk appetite. Bitcoin hits its two-week high, extending gains from earlier this week when it had surged to $41,938 per coin on Saturday morning (Jan. 24).
Related literature | Bitcoin Mimics Stock Rally, Hits Two Week High
Bitcoin, the largest digital currency in the world, has hit $41,938. It is 16% high from Thursday’s low and 27% from the current year low of $32,950.
Bitcoin price hits a two-week high of $41,938. Source: Tradingview.com
Ether, the second largest digital currency, has reached new heights, reaching $3K for the first time since January 21.
Bitcoin posted its biggest one-day gain since mid-June as fears of faster-than-expected rate hikes by the Fed fueled inflation, with the cryptocurrency also plagued by technological innovation. However, Friday’s 11% rise was enough to buck this trend and gain positive press until Monday, when everything is likely to fall again.
Bitcoin Price Recovery: Thanks to Amazon
Despite a long week of earnings volatility, US equities ended the week on a strong note. The tech-heavy NASDAQ made gains thanks to Amazon’s robust growth, and Facebook owner Meta Platforms’ disappointing results that night gave them greater confidence in their business models going forward.
Related literature | Amazon Strong Growth Attributed To Cloud Despite Retail Headwinds
Bitcoin has seamlessly entered the mainstream. This has led investors to want to act when risk appetite is low. Ed Hindi, Chief Investment Officer of Tyr Capital, said;
“The current panic and volatility surrounding bitcoin is based on a fundamental misunderstanding of it as an asset class. When valuations on the Nasdaq fall, misguided institutional investors begin to liquidate bitcoin positions en masse as if it were a technology stock.
The recent surge in the stock market has given other listed crypto assets a boost. As a result, some currencies even hit new highs.
BTC Price Prediction
While prices for Bitcoin dropped significantly in the last week of January, standing at 47% of their all-time high, the cryptocurrency recovered somewhat after hitting a low of $33K on January 24, 2022, and is worth about $42K. .
Buy, sell and hold? Analysts are divided on whether or not to buy cryptocurrency. But more than half believe that now is a good time for buyers, and only 45% disagree.
The experts from the top fintech firms predict that bitcoin will hit an all-time high of $93,717 by the end of 2022 — more than $24,000 higher than its current all-time high.
Now is a good time to invest in cryptocurrency. Experts predict that bitcoin will trade at $192k by the end of 2025 and rise more than 300% from its November 2021 peak, reaching nearly half a million dollars by 2030. While these predictions may seem lofty goals at first glance, They are significantly less than what experts predicted in July 2021 when their latest forecast said bitcoins prices could reach 265k or 706k, respectively.
Featured image from Pixabay, chart from TradingView.com