Bitcoin Hits Four-Week High as Crypto Rebound Continues
The crypto market is on fire as bitcoin (BTC) reached its highest price in four weeks, surpassing the $65,000 mark on Tuesday. This surge comes after a dip below $63,000 earlier in the day, fueled by wallets related to the defunct Mt. Gox exchange’s estate moving $2.8 billion worth of BTC in preparation for distributing assets to creditors.
The rally was not limited to bitcoin, as the CoinDesk 20 index (CD20) also saw a nearly 3% gain over the past 24 hours, with 16 of the 20 constituents in the green. XRP (XRP), the native token of the XRP Ledger payment network, was the standout performer among altcoin majors, rising 9% on Tuesday and extending its weekly gains to 35%.
Whales increasing their holdings of XRP and the announcement of indices and reference rates for XRP by traditional derivatives trading powerhouses CME and CF Benchmarks have contributed to the token’s rally. Brad Garlinghouse, CEO of Ripple, suggested that these offerings may boost institutional adoption for XRP.
As investors speculate on the impact of the $9 billion bitcoin about to be distributed to Mt. Gox creditors, some experts believe that fears over potential sell pressure are “overestimated.” Crypto analytics firm CryptoQuant CEO Ki Young Ju argued that the market should be able to absorb the liquidation of assets by creditors without causing severe disruptions.
Well-followed analyst Alex Krüger estimated a maximum 10% price drop for bitcoin if creditors dump their assets en masse, while CoinMetrics suggested that the market depth and trading volumes should be able to absorb the distribution of BTC over a couple of weeks without causing liquidity shortages.
Overall, the crypto market is showing resilience and strength, with the recent rally indicating growing confidence and interest in digital assets.
