Crypto resurrects as bitcoin surged at $40k on Wednesday

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Bitcoin price surged over $40,000 on Wednesday for the first time since June 16.  The world’s most popular cryptocurrenty was trading at $40,094.84 at 1130 hours IST on July 28 on coinmarketcap.com Index. 

The latest jump came after electric carmaker Tesla’s June quarter earnings showed that it holds $1.3 billion worth of Bitcoin. The world’s oldest cryptocurrency has been on a surge after speculation that Amazon may soon start accepting payments in Bitcoin, Ether and other cryptocurrencies. Bitcoin gained 30% in the last one week, the data from coinmarketcap.com showed.

The sudden rise in the cryptocurrency world could also be a result of traders buying up bitcoin to fill positions they were short on, having bet its value would fall further. “The short squeeze that happened in Bitcoin towards the end of the weekend gave a boost to the entire cryptocurrency market. The past 24 hours saw the markets losing steam and entering a consolidation mode.

“We saw a massive number of short positions opening up in Bitcoin. However, this is not a bear market currently, as we saw the prices of most cryptos following a tight-range-bound trajectory,” said Edul Patel, co-founder and chief executive officer, Mudrex- A Global Crypto Trading Platform.

“Bitcoin’s Taproot upgrade, which is the most significant upgrade to the Bitcoin network in four years, will happen this year in November. The run-up to the network up-gradation will continue to be a price-discovery mode for BTC. Ethereum 2.0 is also supposed to happen later this year. These are significant events that will shape up the next market cycle for cryptocurrencies. For the short term, we can expect prices to consolidate around current levels,” Patel added.