In spite of bear market forces, Bitcoin is only a few hundred dollars away from reclaiming the coveted $21,000 region.
Bitcoin reached an all-time high on October 26 at $20,866, contributing to the industry’s market capitalization reaching over $1 trillion. The asset was unable to surpass the $21K barrier despite the momentum.
According to tracking data from Coingecko, at the time of publication, the cryptocurrency was trading at a slightly lower price of $20,673 but was still up 2% over the previous 24 hours and 7.8% over the previous week.
This situation increases the likelihood that Bitcoin will once again drop below the important $20K area, returning to its previous condition before the little rise.
Analysts believe that the first cryptocurrency is not yet prepared to give up its recent gains since bulls are making every effort to defeat bearishness.
Bitcoin As Store Of Value
Despite being the most popular cryptocurrency, market dynamics that can affect its price trajectory can still affect Bitcoin.
For instance, the U.S. Federal Reserve will once more implement a 75 basis point increase in interest rates to address the high inflation figures that continue to destabilize the U.S. economy and have already been shown to have a negative impact on the cryptocurrency space.
Investors are prone to switch to superior stores of value when fiat currencies experience excessive volatility and devaluation, which benefits assets like Bitcoin.