![Cryptocurrency Market Rebound: Bitcoin Up 7.2% Ethereum Up 10% Cryptocurrency](https://www.briskmarkets.com/blog/wp-content/uploads/2024/08/Articles-Featured-Image-Brisk-Blog-1-696x399.jpg)
After experiencing a recent slump, the cryptocurrency market has recovered, as cryptocurrency charts indicate on Friday, August 9, as Bitcoin managed to achieve a gain of 7.63% on international exchanges during the past day, and with this, the price of Bitcoin on CoinMarketCap reached $61,285 in a short period. This rise came as part of a broader recovery in the cryptocurrency market after sharp declines that affected global markets earlier in the week. This recovery prompted some Bitcoin optimists to reconsider the year-end target of $100,000.
On Thursday, US markets rebounded, as the S&P 500 recorded its best performance since November 2022, and the Nasdaq 100, which focuses on technology stocks, rose by 3.1%. This recovery helped compensate for the large losses that occurred on Monday, which negatively affected stock indices and cryptocurrencies.
Over the past 24 hours, Bitcoin has jumped 7.2%, one of its biggest daily percentage gains in recent months. The surge has liquidated around $100 million in short positions (bearish bets) on Bitcoin futures, making it the fourth-largest liquidation of such positions this year. Some market watchers attribute the gains to improved stock market sentiment and expectations that Bitcoin may reverse past market cycles.
On the other hand, Ethereum, the second-largest cryptocurrency by market cap, has surged 10% over the past 24 hours, reaching $2,672. In his comments, he noted that “if Trump wins, the rush of new buyers could push Bitcoin above $100,000.” Terpin added that the six months following the halving have always seen declines, noting that this fifth cycle for Bitcoin is no exception. “October and November are historically strong months for Bitcoin, especially in the halving year and the year after.
Bitcoin stocks and US stocks were the first to react
Bitcoin’s rally revived gains among major tokens. Toncoin (TON), Solana, and Cardano were up more than 5%. XRP was down slightly after a 17% surge on Thursday, likely due to profit-taking.
What determines the price of Bitcoin? What determines the price of Bitcoin? Bitcoin is not issued by a central bank or backed by any government, so the monetary policy tools, inflation rates, and economic growth measures that typically influence the value of traditional currencies do not apply to Bitcoin. Since Bitcoin acts as a commodity store of value, the following factors influence its price.
After the jobs data, Bitcoin stocks and US stocks were the first to react, with US stocks remaining volatile after opening lower on Friday. Bitcoin retreated over the weekend, leading the Asia-Pacific stock market. But gold didn’t rise even under the dual momentum. Another point that the market has ignored is that US bond yields have been inverted for a long time, as a leading indicator of recession. The market was once in recession in 2023 due to the inversion of US bond yields, but now it is. It ignores it at this point.
We are not denying recession. But we may have already been through it, and the market reaction has been very violent, at least for Bitcoin and Asia-Pacific stock markets. This view is supported by the volatile bullishness of US stocks after opening lower on Monday, as well as the decline in precious metals. Therefore, from a macroeconomic perspective, we do not believe that there is room for further dumping of various financial assets, or that bullish strategies are better than bearish strategies.
Whales’ participation in transactions
ETH’s decline is much greater than BTC’s. This may be due to the large amount of ETH being pledged to the protocol, which actually increases liquidity but volatility. ETH has wiped out almost all of its gains since 2024, and it’s hard to imagine that in an environment where ETH ETFs are listed. But anyway, ETH has also had and the bulls have been gaining strength.
Judging by the indicators, there have been signs of whales participating in the trades in the past two days, which means that whales have been hunting for deals after ETH’s decline. The ME indicator has turned bearish. So we think ETH could be volatile this week, and that a downtrend is more likely than an uptrend. We lower the support level to 2400 and the resistance level to 2800.
Trump galvanizes crypto markets on Bitcoin 2024. He said he would remove Gary Gensler from the SEC leadership as soon as possible if he takes office. US government will not sell its Bitcoin holdings, whether currently owned or potentially purchased in the future, as a special form of strategic reserve. The market was drawn to his promise and Bitcoin began to rise away from ETH, reaching 70,000. If Trump is elected and delivers on his promises, Bitcoin will open a new upward channel after November.
What determines the value of a cryptocurrency? The price of a single Bitcoin is determined by several factors, including supply and demand, competition, and regulation. News developments also affect investors’ perceptions of the cryptocurrency.
What are the expected cryptocurrencies to rise in 2024? Bitcoin – The original cryptocurrency, known as “digital gold” (trading at: $58,594.38) Ethereum – The first blockchain for smart contracts and decentralized application development (trading at: $2,735.80) XRP – A network for fast and low-cost cross-border transactions (trading at: $0.530)