Though Bitcoin is down over 65% from its November 2021 all-time high of just above $69,000, still it’s having a sterling July: the biggest cryptocurrency is up 19% in the last 30 days and has become its best month since last year.
The digital asset is now trading for $24,094, according to CoinMarketCap. That’s a seven-day increase of nearly 3%. But more significantly, Bitcoin’s 30-day rise is the most significant spike since October.
These could be marked as bullish signals, as Bitcoin and the other crypto markets have been struck by rising inflation and a probable worldwide recession. As the Fed has elevated interest rates, investors are cracking “risky” assets. This includes U.S. equities and Bitcoin (and other digital coins and tokens), which are excessively volatile.
Given today’s data, the asset is doing better than anticipated—and is still closely associated with the U.S. stock market, a typical pattern seen in 2022. U.S. stocks were up for the third day in a row Friday, and are set to have their best day in nearly two years as investors seem less spooked by the Federal Reserve’s moves to cool inflation.
And Bitcoin isn’t the only digital asset having a good month: Ethereum is now trading for $1,745—a 55% 30-day growth.
A report yesterday stated that this is perhaps related to the long-awaited and fast-approaching upgrade to the second largest cryptocurrency known as “the merge”. By September, Ethereum is anticipated to have moved over to a more energy-efficient compromise mechanism called proof of stake.
This upgrade will remove the need for miners, instead depend on validators to keep the network secure and process transactions by locking up the blockchain’s native cryptocurrency. Some say the merge could deflate the cryptocurrency, so investors are more bullish than before.
This run could still be a short run for both Bitcoin and Ethereum: if inflation remains high and digital assets continue to follow equities, the bear market could continue to hurt investors.
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