Bitcoin got off to a strong start this week, rising more than 5.20% since Monday’s beginning. BTC was able to break above the psychological $30,000 resistance barrier and hit a high of $30,980 in the last few hours thanks to the strong bullish impulse.
Since early 2021, $30,000 has functioned as a crucial psychological support level for Bitcoin. In July 2021, it fell below the $69,000 mark for a brief period before rising to an all-time high above $69,000 three months later. Bitcoin, on the other hand, has been on a steady drop since November 2021, finally breaking below $30,000 for the second time earlier this month during a week of mayhem that saw Terra’s collapse wipe out the whole industry.
In recent months, as macroeconomic uncertainty has grown, Bitcoin’s price has been paralleled by many other crypto assets and traditional equities. Crypto and worldwide markets have been hit by selloffs after the Federal Reserve announced interest rate hikes and quantitative tightening measures to combat increasing inflation rates. This year, tech companies in Silicon Valley have been among the hardest hit, with behemoths like Amazon and Tesla reporting double-digit losses (34.8% and 36.6%, respectively).
Netflix experienced a record daily loss of 38% last month after reporting a drop in subscribers, in one of the clearest signs yet that the big tech bubble has finally burst.After hitting $3 trillion seven months ago, the crypto market has plummeted to roughly $1.3 trillion, trading in close association with other asset classes in recent years.
Despite a difficult few weeks, Bitcoin rose 5.2% on Monday as global stocks and US futures rose. European and Asian stocks soared as traders began to bet on the Federal Reserve’s decision to embrace a less aggressive tightening stance in the coming months. Futures on the Dow Jones Industrial Average are up 1.76%, futures on the S&P 500 are up 2.47%, and futures on the Nasdaq Composite Index are up 3.33%. Markets in the United States will be closed on Monday in observance of Memorial Day, with trading expected to resume on Tuesday.
Today, the crypto market is up 5.3%, with numerous lower-cap products outperforming Bitcoin. Nonetheless, the market has a long way to go before it can recapture its highs, thanks to weariness from the 2021 bull cycle and a shaky macro environment.
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