Bitcoin traded as high as $46,050.61. That marks its highest level since May 16, when it hit $49,770.33, according to Coin Metrics.
It last traded at $45,998.50, about 5% up on the day. The price of ether also broke through $3,000 over the weekend for the first time since May.
Sam Bankman-Fried, CEO of cryptocurrency exchange FTX said on CNBC’s “Squawk on the Street” Monday.
“There has been a surprisingly large pro-crypto stance taken in the course of this,” he said. “It’s one of these things where, even if it loses in this particular amendment, a lot of senators have ended up taking crypto stances that never said anything before publicly.
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It’s showing there’s a much bigger presence in Washington of cryptocurrency interest than people expected going into that.”
“I don’t believe that bitcoin rallied because of the gold price correction,” he clarified.
“The more likely explanation is that market participants are learning how important crypto markets became and are increasingly allocating to these markets.
Crypto is so important that it made it into the infrastructure bill and senators are debating crypto provisions before passing the bill.”
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“The minor breakouts reflect positive short-term momentum and improved intermediate-term momentum following July’s successful test of support near $30,000,” said Fairlead’s Katie Stockton.
“The next hurdle on the chart is just above $51,000, which seems in store for a test given no signs of upside exhaustion at this time.”
Frequently Asked Questions About Bitcoin Retaking $46,000 as Rebound Continues
1. Why has Bitcoin’s price rebounded to $46,000?
Bitcoin’s rebound to $46,000 is driven by several factors, including:
- Positive market sentiment after a recent price dip.
- Institutional investment and increased buying interest from large investors.
- Global economic conditions that favor alternative investments like Bitcoin.
- Regulatory clarity in key markets, leading to renewed investor confidence.
2. What caused Bitcoin’s price to drop before the rebound?
Bitcoin’s earlier price drop may have been caused by:
- Market corrections after rapid price gains.
- Fears of regulatory crackdowns in regions like China or the US.
- Profit-taking by large investors, which triggered a sell-off.
- Economic uncertainties or bearish sentiment affecting global markets.
3. What role do institutional investors play in Bitcoin’s recovery?
Institutional investors play a significant role in Bitcoin’s price movements. When institutions like hedge funds, asset managers, and corporations increase their Bitcoin holdings, it creates upward pressure on prices, leading to a recovery or continued growth.
4. How does Bitcoin’s rebound impact the broader cryptocurrency market?
Bitcoin’s price often sets the trend for the broader cryptocurrency market. When Bitcoin rebounds, other major cryptocurrencies, such as Ethereum, Solana, and Binance Coin, tend to follow suit, leading to a market-wide recovery.
5. Does this rebound indicate a bull market for Bitcoin?
A price rebound to $46,000 can be a positive sign for a potential bull market, but it does not necessarily confirm one. A sustained recovery with consistent price gains and increased trading volume over a longer period would better indicate a bullish trend.
6. What are the key factors supporting Bitcoin’s rebound?
Key factors driving Bitcoin’s rebound include:
- Renewed institutional interest: Companies and large investors increasing their Bitcoin holdings.
- Improved regulatory clarity: Positive or neutral news from regulators can boost investor confidence.
- Increased adoption: More companies accepting Bitcoin as a form of payment or adding it to their balance sheets.
- Retail interest: Retail investors jumping back into the market after price stabilization.
7. Is Bitcoin’s price likely to continue rising after $46,000?
While Bitcoin’s price could continue to rise beyond $46,000, the market remains volatile, and external factors such as regulatory changes, economic conditions, and market sentiment will play a significant role. Investors should closely monitor trends and news.
8. How does Bitcoin’s price rebound affect retail investors?
For retail investors, a rebound can be seen as an opportunity to either:
- Buy in if they believe the price will continue to rise.
- Hold (HODL) their assets in anticipation of further gains.
- Take profits by selling at a higher price after the rebound.
It also boosts overall market confidence, encouraging more participation in the crypto space.
9. How does the Bitcoin rebound affect altcoins?
Altcoins often follow Bitcoin’s price trends. When Bitcoin rebounds, it usually creates positive momentum for other cryptocurrencies, known as altcoins. This correlation can lead to price increases in major altcoins like Ethereum, Cardano, and Polkadot.
10. What role do market sentiment and news play in Bitcoin’s recovery?
Market sentiment and news are critical in Bitcoin’s recovery. Positive news such as:
- Institutional investments.
- Companies adopting Bitcoin for payments.
- Favorable regulatory updates.
These developments can improve investor confidence, drive demand, and boost Bitcoin’s price.
11. What should investors consider during a Bitcoin price rebound?
During a price rebound, investors should consider:
- Volatility: Bitcoin prices can change rapidly, so it’s essential to manage risk.
- Long-term goals: Are they investing for the short-term or long-term gains?
- Market analysis: Staying informed on news and technical trends that could impact the price.
- Diversification: Balancing Bitcoin with other investments to reduce risk.
12. What are potential risks to Bitcoin’s price recovery?
Potential risks to Bitcoin’s continued recovery include:
- Regulatory crackdowns: Sudden or harsh government actions against crypto could impact prices negatively.
- Whale sell-offs: Large investors (whales) selling large amounts of Bitcoin could cause downward pressure.
- Economic downturns: Broader financial market instability may cause investors to pull out of risky assets like Bitcoin.
13. How long does a typical Bitcoin rebound last?
The duration of a Bitcoin rebound varies. Some rebounds can last days or weeks, while others can continue for months, depending on the factors driving the recovery. Investors should monitor the market closely for signs of sustained growth or potential corrections.
14. Could Bitcoin’s price fall again after retaking $46,000?
Yes, Bitcoin’s price could experience future dips after retaking $46,000, as the cryptocurrency market is highly volatile. Price corrections, profit-taking, or unexpected negative news can lead to fluctuations even after a rebound.
15. What impact does global economic news have on Bitcoin’s recovery?
Global economic news significantly influences Bitcoin’s price. Events like:
- Inflation fears.
- Central bank policies.
- Political instability.
These factors can drive investors towards or away from cryptocurrencies, impacting Bitcoin’s recovery or causing further volatility.