Despite the ongoing crisis, which includes high-profile bankruptcies, problems with crypto lenders, and worries about inflation and rising interest rates, Bitcoin, the leading cryptocurrency, rebounded from its 2022 June lows. It finished July with an impressive recovery to the $24,000 threshold.
The months of June and July 2022 on the cryptocurrency market were heated downtrends. Some investors lost their faith in these months due to a painful deleveraging process brought on by a liquidity problem in the crypto lending industry in 2022.
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Several lenders, including Celsius, Vauld, and Zepmix, banned withdrawals due to the severe market sell-off of significant cryptocurrencies, resulting in job losses throughout the cryptocurrency sector.
However, the crypto winter was partially over for investors in July, but a slew of high-profile bankruptcies indicates that things aren’t quite back to normal for them just yet.
Like, crypto lender Voyager Digital was compelled to seek Chapter 11 bankruptcy protection on July 6 following the collapse of the $10 billion cryptocurrency hedge fund Three Arrows Capital (3AC) in June.
Nevertheless, with Bitcoin rebounding, crypto investors feel a slight sparkle after coping with all of these catastrophes. Moreover, the cryptocurrency market bounced back in July following its disappointing result in June.
Bitcoin is currently trading at $23,429 on the daily chart | Source: BTCUSDT From Tradingview
In addition, the Federal Open Market Committee (FOMC) increased its federal fund’s rate goal by 75 basis points (bps) in order to counter 40-year high inflation, which is one of the factors that helped boost cryptocurrency prices in the last week of July.
In July, the cost of BTC increased by about 20%. That represents the best gain since October. As we entered August, the price of Bitcoin was almost around $24,000. BTC is currently trading at $23,045.40 and has had an 11.78% increase in trading volume over the past 24 hours to $46.89 billion, as shown in Nomics data.
Bitcoin’s price dropped steadily from January to May 2022, hitting a closing price of $47,445 at the end of March before further dropping to $28,305 on May 11.
Bitcoin has not closed below $30,000 since July 2021 up to that point. But on June 13, bitcoin’s price abruptly dropped below $22,000 for the first time since December 2020. Nomics statistics show that on June 17, the monthly low was around $17,675.
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Therefore, the biggest significant monthly decline in the price of BTC since 2011 happened in June, when its market value fell by more than 37.3%, finishing the month at $19,279.
Furthermore, BTC started trading at $19,265 on July 1, then gradually and steadily regained its value. The price fluctuated between $20,000 and $22,000 throughout the first two weeks. But in recent weeks, BTC has seen a stunning rebound, breaking beyond the $24,000 barrier on July 19 for the first time this month.
Featured image from Flickr, chart from Tradingview.com