Bitcoin has had its best month yet, with an increase of 27% in July.
After the cryptocurrency’s worst quarter in over a decade, the strong rebound was triggered by the announcement of the new flagship cryptocurrency.
It is important to note that Bitcoin is still closely linked with the U.S. equity market, which is just coming off its best month in 2020. The cryptocurrency market has been closely aligned with the stock market indices over the past month.
The flagship cryptocurrency, Bitcoin, rallied sharply after the U.S. Federal Reserve decided on a highly anticipated 75 basis points rate rise despite the fact that some analysts had expected a huge 100 basis point increase.
Is crypto winter finally over?
Edward Moya is an analyst at Oanda Market Research. He believes the crypto winter may be already thawing. This will allow for more capital to enter the space.
U.Today reported that Binance CEO Changpeng Zhao suggested recently that stablecoin dominance was a positive development as it meant that there was more liquidity sitting on the sidelines. Cryptocurrency investors are now ready to invest more capital, as there is less selling pressure.
It is still too early to forecast the start of another cryptocurrency Spring. Bitcoin remains in bear market territory despite its July success. It is now down 66% from its record high at $69,044.
Despite recent highs, the ‘fear-and-greed’ index is still showing fear, despite being able to gauge market sentiment using a variety factors.