After a slew of negative headlines pushed bitcoin to a new low over the weekend, the king coin experienced a brief price recovery on Tuesday. Bitcoin’s price rose over 6% to $21,358.31. It had dropped to as low as $17,958.05 over the weekend. The price of ether also rose over 5% in the last 24 hours, to reach $1,166.24.
Cryptocurrency Market Overview
The latest developments in the cryptocurrency market result from macroeconomic forces that started to exert pressure on the industry. In addition, the Federal Reserve’s decision to raise interest rates last week sent shockwaves through the financial sector. Infact, the value was the most significant rise since 1994.
Some cryptocurrency companies, such as BlockFi and Coinbase, are laying off employees as they face increasing concerns about their financial stability. Like other investors, crypto miners are treading lightly around the bear market. Some expect the asset class to fall even further before recovery occurs.
According to Marcus Sotiriou, an analyst at Global Block, Bitcoin is currently facing resistance at around $21,300. If it can break this level, it could reach the next target of around $23,500. A “short squeeze” is a type of market phenomenon that occurs when the price of an asset increases, forcing its short sellers to buy more of it to cover their positions.
Shiba Inu Rises by Double Digits
In the last 24 hours, Shiba Inu experienced a remarkable gain of over 30% as the market went through a bear market. Despite the other Alts’ gains, it could still outperform them. According to data from coinmarketcap, the Japanese cryptocurrency had one of the strongest comebacks during the week.
The rise of Shiba Inu is mainly attributed to its low capitalization and liquidity. It also tends to perform well during market bounceback periods. Its regular burning activities also attract a lot of investors. Although its burning amount is not that high, it still has a significant following.
Through a collaboration between Amazon and Johnson’s store, over 70 million Shiba Inu tokens were burned over the weekend. This activity marked the first time the two parties partnered to carry out regular burnings. Before this, the network had only held monthly burnings. Johnson then expanded his scope of burning through the partnership with Amazon’s affiliate program.
Currently, Shiba Inu is trading at a 99% low compared to its all-time high of $0.00008845. It has a long way to go before it can reach its top.
Celsius Surges Despite Transaction Suspension
The Celsius price surge during the past ten days was mainly due to the traders disregarding the token. However, there was a massive buildup of whale and shark addresses behind the scenes according to Santiment.
The Celsius token has gone through a massive rise and fall over the past couple of weeks. It started at around $0.283 before the market crash on July 10, caused by the team’s decision to suspend crypto withdrawals.
According to data from Coinmarketcap, Celsius managed to stay in the green last week despite the overall market decline. Despite this, the token’s price is still around 83 percent lower than its all-time high of $8.05 reached on June 4, 2017.
According to reports, the Celsius Network paid around $10 million to Compound Finance in DAI stablecoins to shore up its liquidity. It has also made several other repayments in the past week. On June 13, the team decided to suspend all transactions related to the Celsius token. They did this to put the company in a better position to meet its obligations.