The Bitcoin price surpassed the psychological resistance level of $80,000 for the first time since January, rekindling hopes for a new rally and even higher levels. This move follows an uptrend in the broader cryptocurrency market, as altcoins have also moved into positive territory ("in the green") over the last 24 hours. The total market capitalization of the sector stands at $2.74 trillion, with Bitcoin's dominance at 58.6%, according to CoinGecko. Liquidations have also increased, reaching $357 million—a 100% rise over the last 24 hours—which is more or less expected during such a sharp price movement. It is noted that the rise in Bitcoin occurred in the wake of the announcement by US President Donald Trump regarding "Operation Freedom" concerning ships "stuck" in the Strait of Hormuz. Traders also processed the announcement from Coinbase that a compromise has been reached on a key provision in a landmark cryptocurrency bill, potentially clearing the way for it to move forward in the US Senate after being delayed due to bank opposition.
Is the Bitcoin rise sustainable?
While "bulls" see this as a reason for celebration, it may be premature to declare the end of the bear market, at least according to some analysts. As CryptoPotato previously reported, CryptoQuant provided data on what drove the April rally and whether May can offer similar results. "The divergence between rising prices and shrinking spot demand is one of the clearest on-chain signals that price gains are speculative rather than structural. Apparent demand remained negative throughout the price increase in April, confirming the absence of fundamental support from demand," the firm stated. However, it remains interesting to see whether the move above $80,000 can be sustained.
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