The price of bitcoin has continued to rebound on Thursday, after briefly crashing below $40,000 at the start of the week.
The cryptocurrency experienced the longest continuous decline since 2018 in the first week of January, with market analysts warning that a severe sell-off could take place take place if it falls below the key psychological level of $40,000.
Funds are already being moved onto exchanges by some investors, with one anonymous wallet transferring more than $40 million in BTC onto Coinbase.
Other leading cryptocurrencies have experienced a similar downturn in fortunes to bitcoin, with Ethereum (ETH), Binance Coin (BNB) and Solana (SOL) all falling by around 20 per cent over the last seven days.
The only top 20 cryptocurrency by market cap to see any positive movement since the start of 2022 has been Chainlink (LINK), which has risen by more than 15 per cent in price.
You can follow all the latest cryptocurrency market news, analysis and expert price predictions in the live blog below.
Bitcoin price bounce gives bulls hope
Some analysts are seeing this latest price bounce as a sign that bitcoin remains in a long-term bull market.
Onchain-analysis from popular crypto analyst Root notes an upward trendline similar to previous cycles in 2011, 2013 and 2017, though much less steep this time around.
For the cycle to be fulfilled as predicted, bitcoin needs to stay above $40,000.
Bitcoin price reaches above $44,000...
but only briefly. The cryptocurrency reached as high as $44,135 overnight, according to CoinMarketCap’s price index, but has since slipped back into the mid $43,000s.
After yesterday’s sudden surge it’s been a relatively calm period for bitcoin and the broader crypto market.
Of the top 10 leading cryptocurrencies by market cap, only Solana (SOL) and Terra (LUNA) saw any significant movement, both rising by around 9 per cent over the last 24 hours. This puts them both in the green on a week-by-week basis.
Bitcoin price heading for record highs in 2022, says bank boss
Bitcoin will reach between $50,000 and $75,000 in 2022, according to the CEO of a Swiss bank.
“Our internal valuation models indicate a price right now between $50,000 and $75,000. I’m quite confident we’re going to see that level. The question is always timing,” said Seba CEO Guido Buehler. “Institutional money will probably drive the price up. We are working as a fully regulated bank. We have asset pools that are looking for the right time to invest.”
You can read the full story here:
‘Our internal valuation models indicate a price right now between $50,000 and $75,000,’ says Seba CEO
Bitcoin price surges as US inflation hits 39-year high
Inflation in the US rose by 7 per cent over the past year, the fastest it has risen in nearly 40 years. The consumer price index increase was largely expected by analysts, yet it still appears to have contributed to bitcoin’s sudden price surge today.
The weakening value of the dollar is seen as one of the leading reasons why investors are looking to place funds in the cryptocurrency, which is often referred to as “digital gold” due to its finite supply.
Investors should be weary, however, as the Federal Reserve is expected to raise interest rates this year in an effort to combat rising prices, potentially leading to a shift away from crypto and into traditional savings accounts.
Bitcoin price surges past $43,000
Bitcoin is now up 5 per cent since yesterday, rising swiftly past $42,000 and $43,000 to close in on $44,000.
Pseudonymous crypto analyst PlanB is in typically buoyant form, tweeting: “The bounce will be epic.”
Despite missing out on his six figure price prediction for 2021, PlanB has stuck by his Stock-to-Flow forecast that sets bitcoin on a path to hit new record highs in 2022.
Kim Kardashian sued over alleged crypto scam
Kim Kardashian is among several celebrities named in a class action lawsuit relating to the EthereumMax cryptocurrency, which crashed by 98 per cent following a series of high-profile endorsements.
“Are you guys into crypto????” she wrote to her 228 million Instagram followers in June last year.
Floyd Mayweather is also caught up in the legal action, after he featured the cryptocurrency’s logo on his shorts during his exhibition boxing match with YouTuber Logan Paul.
You can read the full story here.
‘Are you guys into crypto????,’ the reality TV star wrote to her 228 million Instagram followers
Bitcoin price climb continues
The price of bitcoin is continuing to recover from its worst start to a year since 2012, but it’s doing so at a crawling pace.
The cryptocurrency rose by less than 2 per cent over the last 24 hours to return above $42,000, though it’s still down more than 8 per cent week-on-week.
Other leading cryptos have seen an even greater mid-week bounce, with Ethereum (ETH), Binance Coin (BNB) and Solana (SOL) all rising in value by between 3-5 per cent. The biggest gains came from Avalanche (AVAX), which rose nearly 10 per cent to reach close to $100 per coin.
Bitcoin price approaches ‘death cross'
Bitcoin continues to hold above the psychological level of $40,000 on Tuesday, however the lack of positive movement means it is now approaching another key event - the dreaded ‘death cross’.
This is when the 50 day moving average falls below the 200 day moving average (see graph), which typically signals the end of a long-term bull run and the beginning of a bear run. The opposite market pattern, called a golden cross, took place last September, preceding a record-breaking rally for bitcoin.
You can read more about it here.
More star athletes back bitcoin
Klay Thompson, shooting guard for the Golden State Warriors, has become the latest star athlete to endorse bitcoin by taking part of his paycheck in cryptocurrency.
The NBA star joins Detroit Pistons guard Cade Cunningham, Green Bay Packers quarterback Aaron Rogers and LA Rams wide receiver Odell Beckham Jr to be paid in bitcoin.
“I’m with bitcoin because I believe it’s the future of money,” he tweeted.
Bitcoin price continues to climb
The price of bitcoin has returned above $42,000, as it continues its steady recovery since yesterday’s flash crash.
It is still down nearly 10 per cent since this time last week, and more than 35 per cent down from the all-time high it saw in November. It will take more than a slight climb to prove the downward trend has come to an end, but it has offered investors hoping for a rally some hope.
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