The global cryptocurrency market has recovered $50 billion in a single day, with most coins glowing green on Thursday, as the total market capitalization of digital currencies surpassed $1.3 trillion compared to the lowest point in the last 24h at $1.25 trillion.
Bitcoin (BTC) has recovered from a monthly low this week, hitting above $32,000 on Thursday, July 22nd, after breaking the crucial $29k support level on Tuesday. Bitcoin’s market cap reached $600 billion Thursday and now reflects a market dominance of about 46%, according to the most recent Coinmarketcap statistics.
While with a 4.42% rise in the previous 24 hours, Ethereum (ETH) remains the best performing digital currency among the top ten. Today, Ethereum surpassed the $2,000 mark for the first time in the previous seven days. The world’s second-largest cryptocurrency is currently trading at $1,980, with a market worth of more than $230 billion. ETH represents roughly 18% of the market.
BTC volatility increased at the $30,000 price level, with bearish Bitcoin traders managing to drive the price below $30,000 earlier in the week, but the recent bullish bounce has brought the price above $31,830 at press time.
Analysts and experts are divided on where the market will go from here. Some see an industry-wide drop in May and June as a hiccup in a long-term bull market, while others worry it may be the start of a so-called crypto winter.
Analyst and trader Josh Rager suggests following the bounce “Now, you can do a few things here 1. Get annoyingly bullish without confirmation (this will be the majority) 2. Wait for confirmation for a break at higher levels with bullish reclaim of levels 3. Intraday trade it.”
The Elon Musk effect
The flagship crypto has been pretty steady after its recent rebound from below $30,000, aided by Musk’s statements from yesterday that SpaceX and Tesla has invested in Bitcoin and mentioning he holds Bitcoin, Ethereum and Dogecoin, which helped the recent rebound.
Elon Musk has stated in a live stream that Tesla may soon resume accepting bitcoin payments as “there appears to be a positive trend in the energy usage of BItcoin.” The Tesla CEO also confirmed that the electronic car manufacturer will accept cryptocurrency payments if renewable energy is “at or above 50% and that there is a trend toward increasing that number.”
Elon Musk recently pushed Twitter CEO Jack Dorsey to consider accepting bitcoin payments from advertising. Musk urged Dorsey to do so to enhance Bitcoin’s ecosystem. After first dancing around the matter, claiming that Twitter was seeking to become less reliant on ads, Dorsey eventually agreed, adding, “Let’s do it.”
As per crypto analytics website Bybt, 71,000 cryptocurrency trading positions have been liquidated in the last 24 hours, with the recent $100 billion crypto market recovery liquidating over $330 million in short positions.
A few days ago, $100 billion flowed out of crypto markets in two days, with negative sentiments persisting since the Chinese government crackdown on cryptocurrency miners, making it 28 percent easier to mine BTC.