The price of bitcoin is finally on the rise again! Can this last?

For the first time in more than two months, the price of the bitcoin flirts with 20,000 euros, and this, since this weekend. Are we facing the beginning of a lasting trend, or should caution remain king?

While it had suddenly plunged from 21,000 to 15,000 euros at the beginning of November, in a heated context around the FTX affair, the price of bitcoin signed a spectacular rise this weekend, with a certain stability. , approaching the symbolic bar of 20,000 euros (this one having been exceeded, but in dollars). How should we interpret this renewed form of the largest cryptocurrency?

Hypotheses on Bitcoin’s Renewal of Shape Emerging

The price of bitcoin has plummeted by around 20% over the weekend, approaching its level of two and a half months ago, which obviously has investors asking themselves questions. What can really explain Bitcoin’s return to business?

It is probably still too early to say, but the relative stability observed over the past two months could almost be considered positive, keeping a certain caution in its movements.

Some crypto specialists put forward the hypothesis of inflation moderation in Europe, but also in the United States, lower than expected in recent weeks. Moreover, the prices of the Nasdaq and the CAC 40 have also increased in recent days. Others support the idea of ​​a resumption of work by miners and their machines after the end of the big American storms.

A global increase in cryptocurrencies… which should above all alert

Note that beyond Bitcoin, the other cryptocurrencies, the famous altcoins, also ended the weekend on the rise, Ethereum (ETH) having crossed the 1,400 euro mark for the first time since November 7.

If this sequence of days in the green reassures some investors, it is advisable to remain cautious. The cryptocurrency market is historically low, and the analysis of liquidations provided by the Coinglass exchange platform shows us a record increase in these since last November. And as often, an upward movement is often accompanied by a correction… downwards. So yes, be careful!

Source : Reuters