Saturday, August 13th, 2022


Bitcoin gained momentum on July 4 and hit an intraday high of $20,000.

Since its inception, cryptocurrency has seen a tremendous rise as an asset class. Due to their many advantages and benefits, digital assets are increasingly being used around the world. For thousands of people in the investment industry, cryptocurrencies can also be used as a passive source of income. The area is closely linked to inflation and recession, which is a lesser-known fact. Bitcoin and other major cryptocurrencies are excellent ways to hedge against inflation. They can also protect investors‘ wealth from adverse economic conditions. Buyers can use cryptocurrency to overcome any financial or economic condition, not just inflation. Bitcoin is the most trusted cryptocurrency among all cryptocurrencies, that can be used for hedging. However, there are questions about whether Bitcoin can survive the recession. Pundits and investors are concerned about the future prospects of crypto as the token is currently in its volatile phase and its value continues to decline without any support.

The cryptocurrency saw heightened volatility after the end of June as it surged from more than $2,000 to a multi-day high of just under $21,000 in just a few minutes. The asset quickly fell below $20,000 and that surge didn’t last long. The weekend came and Bitcoin settled around $19,000.

Bitcoin briefly surpassed a $19,000 threshold before falling to $19,457.64. Compared to November 2021, it is currently down by over 70%. A liquidity problem has arisen in the blockchain technology industry worldwide due to the drop in BTC prices. Many crypto professionals expect Bitcoin to hit $10,000 in the near future to continue to climb high efficiently and effectively.

Inflation warnings are responsible for the sharp decline in cryptocurrency popularity. Bitcoin plunged deep into the crypto bloodbath, with a huge struggle to stay in the $19,000 region for crypto investors. The rapid fall in BTC prices is a sign that the Federal Reserve continues to make good progress in controlling inflation rates going forward. In June, the most widely used cryptocurrency saw a decline of over 38% due to inflation and other economic conditions.

Bitcoin price has been supported by the $18,000 level for the past few weeks. The price was supported by the lower border of the triangle, which helped break the channel’s middle trendline. After crossing the channel’s middle trendline and failing to test the upper trendline, the price was rejected. The recent market shakeout could be a pullback towards the breached border. A Bitcoin pullback is more likely than a surge following a triangle breakout.

The asset moved lower for most of the following three days, except for a brief surge to just above $19,000,500. Shortly before the end of July 4th, the cryptocurrency gained momentum and hit an intraday high of $20,000. (On Bitstamp). BTC is currently at $20,000 and has only lost a few hundred dollars. Its market cap is now $385 billion and its dominance over altcoins is 42.3%.

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