Bitcoin retakes $20K, prompting crypto market stabilisation
A slight market recovery over the weekend as Bitcoin (BTC) traded at over $21,000 on Sunday. The original cryptocurrency recovered some lost ground after a volatile Wednesday, which saw BTC drop below $20,000, dragging many altcoins down with it. Similarly, Ether (ETH) and other cryptocurrencies are now surging in line with Bitcoin as the crypto market stabilises, boosted by positive news worldwide.
The crypto market's stabilisation continued the trend of BTC and Co. correlating with tech stocks, as the S&P 500 and Nasdaq both made modest gains, signalling a willingness on the part of investors to take risks once more.
Altcoins benefitted from the positive trend in the crypto market toward the end of the week. They include Avalanche (AVAX), which rose over 4%, outperforming Bitcoin and Ether, and Polygon's MATIC token, which jumped 19% on Thursday after Polygon rolled out improved privacy features for DAOs on its network. Another altcoin, Cosmos (ATOM), also gained 12%.
As the weekday trading resumes, the $20,000 level remains a crucial point to watch for BTC. Historic drops for the first cryptocurrency around this level include the infamous 2017 collapse when Bitcoin neared $20,000 before tumbling by 84%. A similar move now could send prices below $10,000, triggering sell-offs across crypto markets, as well as being an entry point for newcomers looking to buy the dip.
StormGain Analysis Team
(crypto trading, exchange and storage platform)