- Bitcoin pierced through $40,000 level for the first time
- Stellar surged 200% since the beginning of the year
- US OCC says banks can issue payments using stablecoins
- The total cryptocurrency market capitalization surpassed $1 trillion
The price of cryptocurrencies rallied this week as the rising demand from institutional investors continues to support market optimism. Recently several large institutions like Mass Mutual, Square, and PayPal have invested millions of dollars in Bitcoin despite high price levels. Bitcoin, the world’s most valuable cryptocurrency, reached a record high at $40,000 while Ethereum and other altcoins also continued to do well. Stellar had the best week once again among all the top projects, rising 200.00% to 0.39 USD. LTC market capitalization surpassed 6.7 billion USD. The cryptocurrency market has achieved an incredible milestone following the breach of the $1 trillion mark in total market value, while an average daily trading volume is registered at $190.0 billion. Bitcoin's market dominance increased to 69.6%.
Bitcoin price rockets above $40,000
Start investing today or test a free demo
Open account Try demo Download mobile app Download mobile appIt's been a momentous week for Bitcoin. The pioneer cryptocurrency broke above psychological $40,000 level in what seems to be an unstoppable rally. We have seen practically no correction moves since December 2020 as resistance to the upside is extremely weak. Many analysts believe that the rally has been attributed to increasing demand from speculative traders by various strategies in the industry. Besides, high net worth individuals, institutional buyers like the $1 billion investment by MicroStategy, and other trend-following investors have contributed to the ongoing rally. Other analysts believe that Bitcoin is not anywhere close to its potential and could reach $50,000 in the short-term. Also, the ‘Social Volume’ of BTC, which basically reflects the number of mentions of the coin on social media has not reached December 2017 levels just yet, which means FOMO (Fear of Missing Out) is lower.
BTC Social Volume remains at relatively low levels, which indicates that Bitcoin price can potentially rise higher before its first major correction. Source: cryptoticker.io
Bitcoin yesterday hit $40,000 for the first time ever reaching a market capitalization of $742 billion. Today one can see that the upward move is being continued and the price broke above $41,200. Bitcoin is currently testing the upper limit of the ascending channel. Break above it could trigger another upward move towards the psychological $50,000 level. Relative Strength Index (RSI) is already in the oversold area, however in the ongoing bull market, Bitcoin tends to remain in the overbought condition. On the other hand, if buyers fail to uphold current momentum, downward correction may be on the cards. The nearest support lies at $37,552. Source: xStation5
Stellar has surged 200% over a week
Stellar is a top performer among major cryptocurrencies recently. Stellar price is up by more than 200% since the beginning of the year as Ripple loses strength. After the SEC sued Ripple, it seems that many XRP investors have switched their attention towards XLM as a potential alternative. Also Stellar seems to be benefitting from the U.S. OCC’s recent decision to allow U.S. banks to use public blockchains and dollar-backed stablecoins as a settlement infrastructure in the financial system. Banks can now treat public chains as infrastructures similar to SWIFT and stablecoins like electronic stored value. Earlier this week price surged after news that Stellar will help the Ukraine government develop a central bank digital currency (CBDC). Later Ukraine officials announced that XLM coin would play no part in the CBDC, but this fact apparently hasn’t stopped some investors from buying the token.
Stellar started the year with a technical breakout above a descending parallel channel. Price surged 200% and reached resistance at $0.39. Today one can see that a correction move is being delivered at the moment, however buyers managed to halt declines at $0.25 support level. If the sellers will manage to break below, then another downward impulse toward $0.18 level could be launched. Otherwise XLM price can quickly climb back towards the high of $0.39 and above hitting the psychological level at $0.40. Source: xStation5
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.