Bitcoin Rises Above $20,000 Again

Bitcoin has crossed the $20,000 mark again. The blockchain motto is thus gaining momentum again in the wake of the stock exchanges, which are characterized by hope for interest. Other cryptocurrencies are also growing rapidly.

On Wednesday afternoon around $20,650, Bitcoin is trading above the key $20,000 for the first time since early October. Within a week to a good 6.8 percent. The market capitalization is almost $397 billion, about 28 billion more than the previous week’s value.

Hope for interest rates drives markets

“It is the hope of slowing the pace of the US Federal Reserve’s rate hike cycle that is bringing risk appetite to life,” writes German analyst Timo Emden of the crypto market’s recent gains.

How long the hunger will last remains to be seen, as a “sustainable trend reversal is not in sight for the time being”. The fact that it went so fast in such a short time is also due to a short squeeze in Emden: “Otherwise, this jump is difficult to explain in this way.”

Other cryptocurrencies such as ether are making even higher profits, which, however, have also suffered more than the “big brother” Bitcoin in recent weeks. The weekly plus for ether is a whopping 17.5 percent to $1540. Market observers point to the fact that the amount of ether has decreased for the first time since the blockchain switched to the proof of stake validation process.

The total market capitalization of all 13,000 cryptocurrencies listed on the “CoinGecko” portal has therefore risen above the $1 trillion round mark within a week and is currently at $1039 billion.

(dsc/sda/awp)