On Tuesday, Bitcoin momentarily crossed the $20,000 mark, reaching its highest position in more than one week. However, it is still unable to leave its narrow trading price.
However, when equities descended into a bear market, the biggest cryptocurrency in the globe began to decline by the size of the market. Data from Coin Metrics show that it last changed hands for $19,078.21, a decrease of less than 1%. Ether’s decline was likewise only 1% or such.
Bitcoin is still having trouble finding its course. Since June, it has been trading between $18,000 and $25,000 after a slump that saw roughly $2 trillion of the market’s value evaporate since its high in November.
Due to the strong correlation between virtual currencies and U.S. share prices this year, cryptocurrency traders have already focused on monetary regulation. The S&P 500 and the tech-heavy Nasdaq have been under pressure from rising interest rates, which have spread to other riskier assets like cryptocurrencies.
So, according to Vijay Ayyar, vice president of business growth and internationally at cryptocurrency exchange Luno, the U.S. Federal Reserve’s 0.75 percentage point rate rise last week was a “big event” for the cryptocurrency markets.
This was much in line with the market’s expectations, so most of that emotion has already take into account, according to Ayyar.
Traders have been concentrating on a huge network update to the Ethereum blockchain. It dubbed the merging until mid-June when the cryptocurrency market hit its most recent low points. This update altered the way payments on Ethereum are validated and considerably reduces energy usage.
The value of ether, the native cryptocurrency of Ethereum, twice in the months. And leading up to the update, which finishes on September 15. This was a significant outperformance of bitcoin’s gains during that time. But since the merger, ether prices have fallen.
As of 8 a.m. in Hong Kong, Bitcoin had dropped by 3.4 percentage points over the previous 24 hours to trading at US$19,436. Whereas Ether (ETH) had dropped by 8.9 percentage points to US$1,337, its cheapest rate since July 18. As of US$31.14, Solana dropped 7.5%, and Cardano dropped 7.8% to US$0.44. Dogecoin, the most popular meme coin on the planet, was trading at US$0.057 while experiencing a 7.3% loss.