- The world's largest cryptocurrency, Bitcoin is making its way back to the top, driving other cryptos along with it
- Bitcoin sold above the $30,000 threshold it has been since last week to trade at almost $32,000 as of Tuesday, May 31, 2022
- Analysts believe the premier crypto may surge to $35,000 soon as investors to continue to wager on reopening the Chinese economy after COVID-19 lockdowns
Bitcoin has continued its rebound since Monday, May 30, 2022, as its claws its way back to $32,000, breaking the $30,000 resistance level it traded on Sunday, May 29, 2022.
Nairametrics reports that the world’s largest cryptocurrency went up by 8 per cent to trade at $31,000 which was driven by investors all over the globe as Asian and European equity markets went up.
American markets were closed for the Memorial Day celebration.
The recovery in the market can be attributed to the weaker dollar and the on-chain report by Glassnode, which says that Bitcoin holders are now the only ones left doubling down as prices tumble below $30,000.
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Investors debate on reopening Chinese market
According to Marcys Sotiriou, GlobalBlock’s digital analyst and asset broker, Bitcoin broke the $30,000 threshold but needs to hold reset and hold the $29,300 level to suggest a continuation to the upside.
As stated before, the rally in the market comes as a bump in the Asian equities, largely bullish on Monday, May 30, 2022, due to major Chinese cities' COVID-19 lockdowns that began to ease after strict restrictions started to go up.
Investors placed wagers that reopening the economy could cause a spike in consumer spending, which could boost company revenues in the coming weeks and could indicate a bottom for stocks in the Asian region.
What's driving the upsurge in prices
Long-term holders of Bitcoin are the driving force of the current price action with some gathering and others realising losses at an average of -27 per cent.
CoindDesk reports that despite the selling witnessed by some in the long-term holder cohort, the total supply held by these wallets recently returned to its all-time high of 13.048 million BTC.
Glassnode explained that unless significant coin redistribution occurs, the market can therefore expect this supply metric to commence climbing over the course of the next 3-4 months, suggesting holders to continue to gradually soak up, and hold onto supply.
Bitcoin on the rise, as it pushes other altcoins up after days of loss
Legit.ng has reported that after days of being stuck below $30, 000, the largest crypto, Bitcoin rebounded on Monday, May 30, 2022, alongside other cryptocurrencies. Bitcoin rose for the third day in a row, after smashing the $30k hurdle.
It rose by 4.4 per cent to $30,441.43 per coin. While the crypto’s dominance has increased in recent months, having been outperformed by other altcoins and ether jumping above $1.9k.
Investors became encouraged as the dollar slowed down from previous weeks of bullish run and headed for its first monthly loss in five months, following investors’ reduction of bets on higher US rates which spurred rises and concerns of a global recession receding a little.