Bitcoin rally helped the overall cryptocurrency market value surpass $1T, shortly after surpassing the $23,000 hurdle. At press time, Bitcoin was leading a bigger recovery that saw the global cryptocurrency industry recoup $1 trillion in market capitalization. It was trading at $24,100.
Zooming out, it can be seen that Bitcoin experienced a growth of more than 32% over the previous month, although passing through the $24,000 barrier only indicates a 5 percent increase in the previous 24 hours. The market’s perception of the price of Bitcoin appears to be largely unaffected by percentages, as breaking through psychological barriers with significant resistance appears to be the primary driver of upward price action.
Bitcoin appears to be riding a wave of risk-taking sentiment that has surfaced in international markets. Significant advances in the major European and American indexes over the past week have sparked an optimistic feeling that has only been fueled more by an exhausted dollar index (DXY). The U.S. entering a technical recession and news of a 75 basis point rate hike have not slowed Bitcoin’s upward trend. Given that Bitcoin had trouble maintaining the level on July 20, $24,000 appears to be a significant psychological zone.
And while the entire globe’s attention is focused on Bitcoin, Ethereum has been restoring its value considerably more quickly. As seen on Coinbase charts, since reaching a two-year low under $900 on June 18, Ethereum’s price has increased by over 95%, and as of press time, it is currently trading over the $1,700 hurdle.
The Ethereum Foundation predicted that the network would switch to proof-of-stake (PoS) in the middle of September, which has contributed significantly to Ethereum’s strength. For the first time since June 20, 2022, the market capitalization of all cryptocurrencies has surpassed $1 trillion thanks to the combined rallies of the majority of coins.