Bitcoin, the largest cryptocurrency by market capitalization, has managed to reclaim the $20,000 level for the first time since Sept. 18.
The top cryptocurrency is currently changing hands at $20,040 on the Bitstamp exchange after adding roughly 4% over the past 24 hours.
The entire crypto market cap has also approached the $1 trillion mark, according to CoinMarketCap data.
However, it remains to be seen whether bulls will manage to hold above the psychologically important level this time around. According to cryptocurrency analytics company Santiment, “mass profit taking” ensued shortly after the largest cryptocurrency breached the $20,000 level.
Alex DovbnyaAccording to Efficient Frontier’s Andrew Tu, the majority of remaining cryptocurrency holders are long-term holders.
Bitfinex data shows that the number of holders with at least 0.1 Bitcoin has spiked in recent months.
Bitcoin's correlation with the equities market remains pretty high. The recent price uptick coincided with stock futures jumping higher this Tuesday. Nasdaq 100 futures are up roughly 0.75% at press time. The benchmark Dow index is also up 0.62% after plunging into bear market territory on Monday.
Risk assets have declined significantly this year as central banks around the world are acting aggressively against very high inflation.
The price of the world's largest cryptocurrency is still down 71.3% from its record peak.
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Dan Burgin
Vladislav Sopov