26 Oct 2022 Jane Whitmoore
Bitcoin Secures A Price Above $20,000; The Total Crypto Market Cap Nears $1 Trillion
Bitcoin managed to break above the tough $20,000 resistance zone after almost a month of trading just below the zone. Indeed, Bitcoin’s sideways price action began on September 17, when the world’s largest crypto was above $20,000 but collapsed to a low of $18,488 two days later. Since the drop, Bitcoin hovered around the $19,000 mark, with several attempts to break above $20,000, which resulted in narrow-margined trading.
Now, the tides have turned and Bitcoin is back above $20,000, peaking at $20,348 on Tuesday evening before pulling back slightly. However, the dominant crypto secured yet another round of positive price increases, currently trading at $20,487.33 per BTC. Trading volumes are also exploding, which suggests Bitcoin may still have the momentum to attack a price point of $21,000 and above.
Other cryptos also explode
The recent Bitcoin uptick managed to push the sector up, with the total crypto market cap reaching nearly $1 trillion. Bitcoin’s 6% price increase managed to open the door for Ethereum to spike above $1,500. Indeed, the second-largest crypto to date exploded 12% in the past 24 hours reaching a current price point of $1,525.64.
Cardano and Dogecoin also recorded double-digit price increases, while Toncoin (TON) almost reached a 20% daily price increase. The rest of the sector made a 2-7% increase, but several tokens like Quant (QNT), AAVE, and Elrond (EGLD) are on a slight decline.
The sector-wide price increase managed to push the shares of both Coinbase and MicroStrategy up. Coinbase, for instance, increased its stock shares by 13%, while MicroStrategy spiked by 11%.
Meanwhile, CEO and co-founder of BitMEX Arthur Hayes commented that the US government has much to do with the recent crypto pump. According to Hayes, the US Treasury “is thinking about supplying the market with more short-term T-bills to alleviate a shortage.”
Hayes also noted that there’s $2.2 trillion sitting in the Fed’s Reverse Repurchase Facility (RRP), and if the numbers go down, the market would most probably feel a positive sentiment.
And while Ethereum is spiking, CEO of Eight Michael van de Poppe thinks that the most probable route for Bitcoin is up.
“Within two to three weeks, bitcoin will break out significantly. My take is the upside. My guess is probably $30,000.” Poppe added.
Van de Poppe’s opinion is covered by other analysts, which consider that high inflation rates across the world would also trigger investors’ move to bitcoin. Furthermore, Bitcoin’s short-term recovery placed it firmly above its 50-day moving average, which is another bullish trend indicator.
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