Despite the current crisis, which includes high-profile bankruptcies, issues with crypto lenders, and worries about inflation and rising interest rates, Bitcoin, the leading cryptocurrency, has rebounded from its June lows. 2022. It ended July with an impressive rally to the $24,000 level.
The months of June and July 2022 in the cryptocurrency market were marked by bearish trends. Some investors have lost confidence in these months due to a painful deleveraging process caused by a liquidity problem in the crypto lending industry in 2022.
Related Reading: TA: Ethereum Consolidate Gains, Why This Support Is Key
Several lenders, including Celsiusvault, and Zepmixprohibits withdrawals due to the massive sell-off in the market of major cryptocurrencies, resulting in job losses across the cryptocurrency industry.
However, the crypto winter was partially over for investors in July, but a series of high-profile bankruptcies indicates that things are not quite back to normal for them yet.
Like, crypto lender Voyager Digital was forced to search Chapter 11 bankruptcy protection on July 6 following the collapse of $10 billion cryptocurrency hedge fund Three Arrows Capital (3AC) in June.
Nevertheless, with the rebound of Bitcoin, crypto investors are feeling a slight spark after facing all these disasters. Moreover, the cryptocurrency market rebounded in July after its disappointing result in June.
In addition, the Federal Open Market Committee (FOMC) has increased its federal mandate the fund’s rate target of 75 basis points (bps) to counter 40-year high inflation, which is one of the factors that helped push cryptocurrency prices higher in the last week of July.
Bitcoin Recovery from June Low Price Analysis
In July, the cost of BTC increased by around 20%. This represents the best gain since October. At the start of August, the Bitcoin price was around $24,000. BTC is currently trading at $23,045.40 and has seen an 11.78% increase in trading volume over the past 24 hours to $46.89 billion, as shown by data from Nomics.
The price of Bitcoin fell steadily from January to May 2022, reaching a closing price of $47,445 in late March before dropping to $28,305 on May 11.
Bitcoin has not closed below $30,000 since July 2021 until this point. But on June 13, the price of bitcoin abruptly fell below $22,000 for the first time since December 2020. Economic statistics show that on June 17, the monthly low was around $17,675.
Related Reading | Despite Polygon’s Bull Run, Buyers Struggle Near $1.0 Resistance
Consequently, the largest significant monthly decline in the price of BTC since 2011 occurred in June, when its market value fell by more than 37.3%, ending the month at $19,279.
Additionally, BTC started trading at $19,265 on July 1 and then gradually and steadily recovered in value. The price fluctuated between $20,000 and $22,000 in the first two weeks. But in recent weeks, BTC has seen a stunning rebound, breaking above $24,000 on July 19 for the first time this month.
Featured image from Flickr, chart from Tradingview.com