Bitcoin recouped losses from last Thursday, 12, which saw the cryptocurrency trade below $44,000 after several days of highs – hitting the day’s low of $43,800.
The world’s largest cryptocurrency by market value has risen 1.5% in the past 24 hours and trades at the time of publication for approximately $46,538.
Bitcoin comes close to the projection of experts, who predict prices of $50,000 for the cryptocurrency in the near future.
“We found that many investors were taking advantage of recent market moves by profiting from it,” said Asher Tan, CEO of cryptocurrency broker CoinJar. “There is a trend of conservatism among users who invested earlier this year at similar price levels, who are slightly trimming their (bitcoin) holdings.”
In fact, the total daily volume of bitcoin at several brokers, including Bitstamp, remains flat when compared to previous months, especially the end of May.
“While recent price movements have seen activity in the markets pick up, global trading volumes are nowhere near where they were the last time the price hit $45,000 – they are much lower,” said Janine Grainger, co-founder of Australian brokerage Easy Crypto.
The co-founder points out that new investors are cautious since they experienced market volatility when the May sell-off sent prices down 50%, from $56,700 to the $30,000 range in just over a week.
Even “season investors,” Grainger argues, are increasingly active, with data suggesting strong acceptance of altcoins starting on 9 August. “In particular, ether has grown significantly against bitcoin and this is becoming a trend again starting today,” she said.
“Some people are worried that we’re close to repeating the past with this year’s $60,000-30,000-45,000 range, but this time it’s really different,” said BCB Group CEO Oliver von Landsberg-Sadie. “There is a ton of institutional money in the system, which behaves very differently from retail money; the ecosystem has evolved significantly with hundreds of thousands of hours of work in innovation; and regulation gained a much better definition”.
Ether isn’t the only cryptocurrency trending up at the moment. Cardano, Stellar and Solana posted the highest gains in the last 24 hours – the first, due to the upcoming announcement of a major update.
In a seven-day period, most altcoins appearing in the top 20 of the market outperformed bitcoin, while most decentralized finance cryptocurrencies (DeFi) are in the green, with increases between 6 and 90% in same period.
“In terms of altcoins, many cryptocurrencies, especially DeFi, lagged behind bitcoin and ether,” said Tan. However, we have started to see a trend among users to exchange bitcoin for DeFi coins, which has been a catalyst for recent price appreciation.”
Text translated and republished with permission from Coindesk