Let’s get into the details on rising cryptocurrency prices, what could be causing the uptick in the industry, and what’s likely to come next.
The cryptocurrency market is back on the up and up in recent weeks with all of the top coins trading in the green as of today.
But, let’s not get too excited just yet. We’ve tried to call it a few times now, but we don’t want to jump the gun and say this uptick in crypto values means the market is officially thawing from what’s been a long, long winter. Still, some bullish crypto investors do believe the industry is ready to make a strong rebound.
Here are the prices for what some of the top cryptocurrencies are trading for per share as of around 3:30 p.m. ET on Wednesday, Oct. 26, per CoinGecko’s data, with percentage changes across the past seven days:
- Bitcoin: $20,682 (+6.8%)
- Ethereum: $1,550 (+18.2%)
- Binance Coin: $288.83 (+5.7%)
- Solana: $31.02 (2.7%)
- Cardano: $0.40 (10.5%)
- Dogecoin: $0.07 (16.5%)
With all of this positive action, the global cryptocurrency market cap has hit $1.4 trillion. This is up nearly 2% in the last 24 hours, but still 50% below than the $2 trillion capitalization the market achieved in March.
Why Are Crypto Prices Rising?
For some days now, Bitcoin’s price was stuck in the $18,500 to $20,000 range, and Ethereum finally surpassed $1,500 for the first time in roughly a month. For Dogecoin specifically, the meme token has been gaining more and more traction since Elon Musk finally, formally revived his intentions to acquire Twitter.
Still, why is the overall crypto tide rising right now? Especially since the US Internal Revenue Service recently shared new tax guidelines that show that all digital assets, including NFTs and cryptocurrencies, can be taxed under the same rules.
Expert analysis contends that the current crypto surge comes as traders who shorted the bear market liquidated more than $1.1 billion in crypto assets in the past 24 hours. These traders betting against the market bought into these assets in hopes to profit when prices decline; crypto exchange FTX reported more than $745 million in short liquidations alone.
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During a short squeeze period like this, much like the stock market, crypto prices increase because investors feel forced to either buy or liquidate their assets.
Crypto investors are also feeling optimistic that the Federal Reserve will soon ease up on interest rate hikes; each time this year when interest rates increased, crypto values went down right along with stocks. If current Fed rate hikes meet their end soon, crypto investors may get a little frisky with their investments and show the market some more action.
What’s Next?
While crypto prices are steadily rising, some experts are projecting that the market will bottom out before the next high-volatility event. Maybe that means another stablecoin crash is on the horizon — or perhaps we could see BTC reach nearly $70,000 with the market slowly inching closer to the next Bitcoin halving event.
One thing about the crypto industry is that it is as unpredictable as ever right now.
You can bet we’ll be keeping a close watch each step of the way.
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