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Bitcoin, the world’s largest cryptocurrency, has managed to log its best month of the year, adding roughly 27% in July.
The strong rebound came after the flagship cryptocurrency recorded its worst quarter in more than a decade.
It is worth noting that Bitcoin remains closely aligned with the U.S. equities market, which is coming off its best month since 2020. Throughout the past month, cryptocurrency prices dovetailed with stock market indices.
Last week, the flagship cryptocurrency rallied sharply higher after the U.S. Federal Reserve decided to go with a widely anticipated 75 basis point rate increase even though some analysts expected a massive 100 basis point hike.
Edward Moya, an analyst at market research firm Oanda, believes that the crypto winter might be already thawing, which will allow more capital to enter the space.
As reported by U.Today, Binance CEO Changpeng Zhao recently suggested that the growing stablecoin dominance was a bullish development since it meant that a lot of liquidity was sitting on the sidelines. Now that some selling pressure is easing up, cryptocurrency investors are ready to deploy more capital.
Still, it is too early to predict the start of another cryptocurrency spring. Even after its stellar July, Bitcoin is down a whopping 66% from its record high of $69,044, which means that it remains deep in bear market territory.
The “fear and greed” index, which is used for gauging market sentiment based on a variety of factors, is still flashing fear despite recovering from recent lows.
Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.
Disclaimer: Any financial and market information given on U.Today is written for informational purpose only. Conduct your own research by contacting financial experts before making any investment decisions.
