Subsequently being in the red for over a month, the largest digital currency by market capitalisation, Bitcoin (CRYPTO: BTC), has reduced some of its losses and is trading up nearly 12% over one week, making a brief high of $22,527 along with a spurt in volumes on July 8, before settling back to around $21,700 levels.
Professionals alarm the surprising price uptick is a “one-off event” that is most probably a response to crypto trade Binance’s judgment to eradicate fees on BTC spot trading and that it in no way motions a price setback.
Anndy Lian who is the Chief Digital Advisor to Mongolian Productivity Organization explains the abrupt price rise in BTC price is unsustainable as there are no promising reasons for it.
“The mere piece of good news that is nearly linked to the rise would be Binance’s zero fees Bitcoin promotion. Several people were striving to earn VIP tiers which arose in a vast transaction volume. That volume can be subjected to clean trading and manipulations,” he tells and expands that the event is one-off. He adds that investors should “not be fooled” to believe that the market has swivelled bullish. Even as the price of BTC rose despite the inadequacy of any important announcement, Glassnode’s futures shorts liquidations metric reveals a considerable number of liquidations of leveraged short positions – from $10.23 million to $29.42 million between July 6 and 7, which could have put forth a bullish pressure to propel”.
Raj Kapoor who is the founder, and CEO of India Blockchain Alliance says given the crypto’s history of volatility, this uptick is in no way a long-term reversal and that BTC’s price is inclined to fall back down.“The addition was stimulated when Binance bid for zero-fee trading for Bitcoin, with proposals to eradicate the charges for further tokens in the future. This was followed up with a stock market rally pursuing the release of the Federal Reserve’s minutes,” Kapoor said.
Specialists point out that the crypto market may not have hit the ground however due to anxieties of intermittent talks of recession, various crypto deals subsiding apart, rising inflation, geopolitical problems, and rising interest rates, that resume to steer extra short-term volatility in the crypto and stock markets.
Follow and connect with us on Facebook, LinkedIn & Twitter.
