Bitcoin once again crossed the $50,000 level during Thursday trading with all major cryptocurrencies rallying
Cryptocurrency recovers quickly after sharp recovery from monthly lows
Cryptocurrency Price Outlook – 25th June 2021
The cryptocurrency market has been given a breather since Wednesday morning, as the prices of the leading crypto-asset recovered from Tuesday’s lows.
Bitcoin price surged to $34,000 on Thursday after diving to $29,000 on Tuesday, hitting its lowest level this year, and Ethereum also surpassed $2,000 after selling pressure pushed it to nearly $1,700 on Tuesday.
Most of the other leading cryptocurrencies followed the same pattern, posting double-digit gains from Tuesday afternoon’s lows.
This recovery comes after a week in which all digital assets recorded strong declines, following the decision of the Chinese authorities to intensify their crackdown on mining and cryptocurrency trading in the country.
Between June 15 and June 22, Bitcoin lost nearly 30%, as its price fell from the $41,000 level to $29,000. In the same period, the world’s second-largest digital currency, Ethereum, lost nearly a third of its value. Binance Coin (BNB) is around 40%.
Low liquidity in the cryptocurrency market
The recent development in the cryptocurrency market has also reduced activity on most blockchains, reflecting lower levels of trading.
Blockchain data reflects that on-chain activity across the board is notably low, particularly Bitcoin and Ethereum, with demand for the block space dropping to levels last seen in 2020.
Although lower transaction rates indicate a bearish potential overall for the crypto market, it also indicates weak selling at current price levels.
For Ethereum the drop in active addresses was even larger, or nearly 30% from the short peak of around 676,000 addresses, the drop in trading values partly due to lower prices but also due to lower trading volumes.
Lower prices due to strict regulation of mining in China
Bitcoin prices have been under constant pressure from the Chinese authorities to get rid of crypto-related activities, and while the ongoing attack by miners and trade links is one of many attempts.
While China continues to enforce the ban, MicroStrategy CEO Michael Saylor continues to reaffirm his confidence in the potential of Bitcoin to crypto-industry players and institutional investors. The company’s holdings of bitcoin to 105085 digital currencies.
Although the accumulation of MicroStrategy may not move the market, it can inspire other corporate buyers to bet heavily on the currency, a situation that may collectively affect the price of the asset.
Professional Trader and Analyst, economist in Financial and Forex market since 2004.holds an MBA from the American University in Egypt. Mohammed works as an economic writer and technical & fundamental analyst for many international Forex and financial trading companies in both English and Arabic on a daily basis.