In brief
- Bitcoin has surged by over $1,000 in about an hour.
- The cryptocurrency is showing signs it will avoid a longer period of price corrections and instead may rise closer to $40,000.
- Bitcoin's price is up 5% in the last 24 hours.
Bitcoin has seen a strong bounce in the last hour, rising from lows of $36,000 to above $37,000. The cryptocurrency reached a high of $37,450 before coming back to the $37,000 mark.
This puts the coin in a stronger position after it fell to a low of $33,860 over the weekend.
Recently, Bitcoin has been in the midst of a price correction. On January 8, 2021, Bitcoin broke the $40,000 barrier—and set a new all-time high in price in the process—but soon after nosedived by over $10,000 in a single day.
Not only was that price crash the biggest Bitcoin has experienced in a single day since its inception, but it prompted calls that Bitcoin's latest bubble had burst, and that it was facing down a new bear market. Yet so far, such a crash hasn't happened, suggesting the rally isn't over.
→This concurs with bullish sentiment from institutional investors. Such investors plowed $700 million into Grayscale's trusts on Friday, the most it has ever seen in a single day.
1/15/2021 was also our largest single asset raise day, ever.
— Michael Sonnenshein (@Sonnenshein) January 16, 2021
The rest of the cryptocurrency market hasn't been particularly affected; the price of Ethereum is up just 0.9% on the day. Litecoin's price, however, has followed Bitcoin's bounce and has risen 7% in the last 24 hours, mainly due to a spike in the last hour.
Disclaimer
The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.
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