Bitcoin Blasts Above $22,000, It’s Highest Level In A Month, Ether Adds10%

Bitcoin Whale
Bitcoin Whale

Bitcoin blasted above $22,000 on Monday, reaching its highest level in more than a month as the crypto market slowly recovers from the dramatic crash.

The largest digital coin globally was trading at around $22,228.70, according to CoinDesk data, a 4% increase. Bitcoin traded as high as $22,493.61 in the past 24 hours, the highest since June 16.

Other cryptos also rebounded, with ether — the second largest cryptocurrency — surging more than 10% compared to the price 24 hours ago, while Polygon’s MATIC soared 21%.

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The bullish momentum was correlated with a rally in stock markets in Europe and Asia. U.S. stock futures were also higher. Cryptocurrencies, specifically bitcoin, have become positively correlated with equity market trade. Often, a rise in stocks will also raise sentiment in the crypto market.

However, investors are also hopeful that the so-called crypto winter — which shed 70% of Bitcoin’s value from its November all-time high — is coming to an end.

The dramatic crash has weighed on a plethora of well-established firms in the space, most notably hedge fund Three Arrows Capital and crypto lender Celsius, both of which have filed for bankruptcy.

Analysts say there are signs this contagion could be slowing.

“The worst of market contagion has likely run its course, with the majority of forced selling behind us,” David Moreno, research analyst at CryptoCompare, wrote in a research note.

Despite the rally, the crypto market is still in a negative area. Both bitcoin and ether are down more than 50% this year. Bitcoin had its worst quarter in more than a decade in the second quarter.

“Given the severely negative performance in Q2, it is unsurprising that a ‘relief’ bounce has occurred. We believe the market will continue range-bound over the coming months,” Moreno said.