Bitcoin analysts explain why the price is rising again

Bitcoin has a good day: after some turbulence earlier this week, prices have now increased by around 6% in the last 24 hours. The price stands at $ 17,684, up from $ 16,800 yesterday.

Bitcoin appeared to be on track to break its all-time high on Monday and Tuesday, but fell Wednesday night. Industry analysts said Decrypt that this price drop had to do with market nervousness.

“The all-time high is a major psychological barrier – breaking it takes real momentum,” said Jason Deane, Bitcoin analyst at the blockchain analytics firm. Quantum economy.

What’s good for Bitcoin tends to be good for altcoins: XRP currently exceeds $ 0.60, and Stellar rose earlier this week; it has increased by almost 100% in the last seven days. On November 23, XRP broke the $ 0.50 mark for the first time since 2018.

As to why the price of Bitcoin is on the rise, Eric Wall, chief investment officer of crypto investment firm Arcane Assets, said Decrypt that it may be fair for the course. “It’s pretty common for him to struggle to overtake a previous ATH and instead suffer a dive,” he said.

Wall attributes the rise to “market psychology”, rather than events like the Recent OKEx withdrawals, or the expiration of approximately $ 1.3 billion in Bitcoin options.

“OKex withdrawals were pushed back from the moment they were suspended. As for the expiration of options – it is highly unusual for sudden mechanical effects in the market to have a lasting impact – if they go contrary to general sentiment, they are almost always absorbed by the market, “he said.

He added that “as the bullish catalysts that have driven us so far are still very present and in action, it is only a matter of time until the temporary selling pressure subsides and we continue our ascent.

Dmitrii Ushakov, the CCO of Russian mining services company BitRiver, suggested that the near-term rally may reflect acceptance of Bitcoin at the institutional level, saying Decrypt that today’s increase “could be part of a larger price hike as more institutions realize cryptocurrencies [are] a reliable store of value and a medium of exchange. “

Analysts have chalk This year’s bull has run up against large-scale investments from MicroStrategy, a tech company that invested $ 425 million in Bitcoin in August and September, and Square, the payments service of Twitter’s Jack Dorsey, which invested $ 50 million in October. Since then, the price of Bitcoin has almost doubled.

The surge triggered by these infusions is still ongoing, overall – Bitcoin started the year at around $ 7,000, fell to $ 4,000 in March, and has been climbing steadily since then, with increasing momentum. . quite significantly over the past few weeks.

If it holds up, this week’s drop has the potential to remain a stain.