Despite a challenging time for the crypto market, it seems the market is recuperating. Currently, the crypto market is seeing modest increases driven by BTC.
As per CoinMarketCap, the market cap for crypto was about $906 billion on June 17th. Meanwhile, as of July 17th, it is about $977 billion, a hike of 7.83%.
Meanwhile, several crypto firms have adjusted their operations and chosen bankruptcy protection. This is due to the huge crypto market slump. However, gains have been made recently.
Celsius, a well-known crypto loan company, has declared bankruptcy after halting withdrawals. Also, both the lending company 3AC and Voyager Digital have declared bankruptcy.
Overall, the sector is still waiting to see how cryptocurrency legislation would affect it. Besides, most governments have proposed various legislative frameworks while enforcing the need for consumer protection.
BTC Keeps Trading Above The $20,000 Price Level
In the past month, BTC has had trouble holding profit above the important $20,000 barrier. Occasionally, it has dropped below it several times.
The cryptocurrency has only seen modest increases of over 1.5% throughout this period. As of the time of writing, Bitcoin was trading at over $22,208.
However, investors are on the lookout as BTC tries to stabilize its price over $20,000. They are watching for indicators of a potential price surge.
Notably, the $30,000 level remains a crucial price threshold. Depending on the market situation, BTC may hit the $30,000 mark in September.
An optimistic feeling can be seen in the crypto market gains despite the rising inflation. When U.S. June inflation reached over 9.1%, the cryptocurrency market responded. It lost over $15 billion within minutes.
Indicators Of A Possible Market Boom
The question now is if the crypto market has dipped and is ready to bounce. Glen Goodman, a crypto consultant at eToro, a multi-asset brokerage firm, thinks the market has hit bottom.
He said the current bad headlines, particularly in the mainstream press, imply a bottom point for crypto. However, analysts are divided on the market’s future direction.
Following the significant market loss, some analysts and news outlets have declared crypto dead. This also includes the flagship currency, Bitcoin, a major part of the market.
Additionally, they predicted more market decline in the coming months. Moreover, significant losses suffered by investors have also contributed to negative headlines.
This includes suspending activities such as withdrawals by crypto-related enterprises like Celsius.