Bitcoin Continues to Hit Resistance at $24,000 Per Coin
Crypto has shown some signs of life as of late
Bitcoin, the world’s most popular cryptocurrency, seemed to continue to hit resistance at the $24,000 mark during Friday' trading.
Bitcoin was trading at $24, 146.50 as of 3:11 p.m. ET.
The Dow was up slightly on Thursday and we have seen cryptocurrencies have a tendency to trade in line with stocks. Bitcoin benefited from BlackRock’s announcement that it will team up with Coinbase to launch a private trust that will hold bitcoin.
“Despite the steep downturn in the digital asset market, we are still seeing substantial interest from some institutional clients in how to efficiently and cost-effectively access these assets using our technology and product capabilities,” the company said in the post, CNBC reported.
Some crypto analysts say they believe bitcoin could hover in the $20,000 to $30,000 range for some time, and not the huge increases that we’ve seen in past years.
The inflation numbers this week came in lower than expected, which was seen as a positive for bitcoin because if the CPI data was significantly higher, the Federal Reserve would take bolder action to rein in runaway inflation.
The higher the rates rise, the more people look to Treasuries as interest-bearing assets. The Fed raised rates by 75 basis points last week.
TRENDPOST: The value of bitcoin fell from nearly $1.3 trillion to $436 billion from November to last week. The crypto made gains when Fed Head Jerome Powell announced that the central bank could ease its interest rate hikes, but James Bullard, the St. Louis Federal Reserve president, seemed to throw cold water on that possibility when he said the Fed could increase interest rates by 1.5 percentage points by the end of 2022.
Bitcoin, the cryptocurrency many see as a benchmark crypto, started the month down about three percent as it continues to flirt around the $24,000 mark.
The weakening of the crypto that once traded at nearly $70,000 per coin has allowed other cryptocurrencies to challenge it for market supremacy.
Fortune magazine reported that the price of Ethereum has soared recently and “fans of the No. 2 token by market value are reviving predictions that it is destined to one day take over the throne,” which is called “flippening.”
The report said Ether’s market value has increased about 50 percent in July to about $210 billion, which is less than half Bitcoin’s value.
Joe DiPasquale, CEO of BitBull Capital, told the magazine that he believes Ether is a “major differentiator.” “
Bitcoin has been the hundred-pound gorilla, but Ether is really the other hundred-pound gorilla, he said.