The cryptocurrency has been struggling for two months now, but things finally seem to be stabilizing. The past weekend witnessed two of the most popular cryptocurrencies again leading the sector towards growth. Bitcoin surged 12% over the weekend while Ethereum hit its three-week high.
Monday is witnessing quick surges in most cryptos as short-sellers have already bailed out with quick earnings. However, with the digital assets still going strong, investors are hoping for a positive week. It might even spark a major turnaround in the current fragile state of the sector.
It started with Bitcoin going as much as 12.5% to reach the market price of 39,850 dollars. While the numbers are lukewarm for Bitcoin, it was the currency’s highest since mid-June. Similarly, Ethereum picked up some pace to reach its three-week high of $2,344. With Bitcoin experiencing a sudden surge of 12%, the majority of the short-sellers bailed out. While it hindered its growth for a bit, the crypto quickly recovered and surged even higher.
A week ago, Elon Musk stated that Tesla would start accepting Bitcoin if miners find a cleaner energy source. It was a direct call to the tweet where the company announced not accepting Bitcoin as a payment method. Tesla posted the tweet in May, which sparked the quick downfall of the sector. Shortly after the announcement, China restricted banks from dealing in cryptos, putting another dent in the sector’s operations.
It has been a couple of months since the announcement, and the industry is finally starting to show some stability. Jack Dorsey also tweeted the previous week that cryptocurrencies are a big part of the social media firm’s future. In addition, the London-based AM newspaper also reported that Amazon might accept Bitcoin as a payment method before the year ends.
The effects of the remarks amalgamated, and the results are evident. The recent surge weeded out the short-sellers and is showing steady growth. Ryan Rabaglia (OSL’s Global Heat of Trading) stated that the previous five trading sessions for the company had witnessed near-term bullishness. It is steered by critical technicals merged with quick positive comments regarding the crypto community. Ryan added that with over 1.2 billion dollars earned in short liquidation over the previous 24 hours alone, the momentum and outlook for the week are substantially positive.
Bitcoin went over the 38,000 dollar mark, reaching the vicinity of June’s 41,000 resistance mark. The number seems staggering as merely a week before; Bitcoin struggled to cross the 29,500 dollars support mark. However, with Ethereum supporting the movement, the majority of the market is witnessing a quick surge. Ryan is not the only expert that predicts a positive outlook for the week. However, with a start being as good as it has, the consensus is expected to be proven right.