Even though 2022 was full of scandals and Sam Bankman-Fried’s FTX exchange failed, Bitcoin hasn’t changed much. The latest blow to the crypto space “does not seem to have a huge impact on crypto prices,” according to Julius de Kempenaer, senior technical analyst at StockCharts.com. Bitcoin is currently trading at around $23,400 and held strong above $23,500 after a volatile trading session. This is impressive given that several crypto companies, like Coinbase and Paxos, have cut ties with Silvergate, a bank that specializes in crypto. It shows that Bitcoin has a strong foundation and can weather difficult times.
The bitcoin mining industry appears to be getting back on its feet after a long crypto winter that saw major bankruptcies and fire sales. As bitcoin trades above $20,000 and money starts to flow back into the sector, the economics of mining have gotten a little bit better. Lower energy costs in the last few months have also given miners some breathing room. This recovery is a positive sign for the industry, as it shows that it can weather difficult times. It also shows that people still want to mine bitcoins, even though the industry is facing problems.
Ethereum (ETH) also inched higher by 0.6% to $1.65K as of 3:50 p.m., helped by a risk-on day across the stock market. Ethereum was trading at $1,656. Like Bitcoin, Ethereum has shown resilience in the face of market volatility and regulatory pressure. Its ability to follow suit with Bitcoin’s gains shows that it remains an important player in the cryptocurrency space. As one of the biggest cryptocurrencies in terms of market capitalization, Ethereum’s performance is often a good sign of how the cryptocurrency market as a whole is doing.
Cover: Crypto Vectors by Vecteezy
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