Late on Saturday night, the price of bitcoin broke beyond the $25k barrier for the first time since June 13. At the time of this writing on Sunday morning, it has lost pace and fell back to $24,510 on CoinMarketCap.
This is an indication that Bitcoin’s $25k threshold is likely to continue to serve as a significant resistance level for the biggest cryptocurrency for the foreseeable future.
The price of Bitcoin has increased by just 5.85 percent over the previous week, while the price of Ethereum, which is ranked second, has increased by 16 percent over the same period of time due to anticipation of the network’s impending merging to a proof-of-stake model.
The important economic indicator stayed constant last month as the Federal Reserve’s interest rate rises looked to be counteracting growing prices. As a result, Bitcoin’s spike may be at least partially attributable to cooling in inflation.
The price of Bitcoin and the rest of the cryptocurrency market, in addition to other assets such as equities and bonds, have taken significant hits during the whole summer as a result of growing inflation and the possibility of an approaching global recession.
The Federal Reserve in response hiked interest rates, which resulted in the creation of a risk-off atmosphere. As a result of this climate, investors sold cryptocurrencies and risky tech companies in order to cling to dollars.
It was previously believed that bitcoin served as a buffer against inflation; however, its reputation as an anti-inflationary “digital gold” has been put to the test this year, as it has instead closely linked with IT stocks.
Despite recent indications of a resurgence, Bitcoin’s value is currently 64% lower than it was when it reached an all-time high of $69,044.77 in November 2021.