Robert Steinadler, a month ago

Bitcoin and Ethereum turning green again: Why is the crypto market pumping?

It is always the same, when the price is down nobody wants to buy and when it goes up nobody likes to sell. Even more importantly, investors are looking for a reason why the crypto market is recovering all of a sudden. The price for Bitcoin went up by 7% and for Ethereum by 15% overnight. After being tortured by brutal sell-offs for the better part of this year, we are finally seeing some light at the end of the tunnel.

Why are Bitcoin and Ethereum leading the charge, and what reasons do have to believe in a recovery?

Reports are coming in

First and foremost, the crypto market is not recovering on its own. Nasdaq and the S&P 500 were recovering for three consecutive days. The reason for this success is being the earnings reports for the third quarter of this year.

Again, everything that evolves around trading is about meeting expectations or failing to meet them. The market expected that the numbers were worse for most companies. In some cases, they really are, and stocks from Microsoft and Alphabet are not doing well today just to name two examples. What is more important is the overall outlook and, in those terms, many companies did better than expected.

What follows is that price is going up again. Since crypto has become heavily correlated with stocks at the beginning of this year, Bitcoin and Ether are both recovering, too.

Are we out of the woods yet?

This remains to be seen. The very reasons why this year was such a disaster for stocks and crypto are still in effect. There is war in Ukraine, and the US and Russia are exchanging nuclear threats with each other. China and the US are still in a trade war, and Taiwan could be potentially the next theater of war if tensions are getting higher.

Inflation is raging, oil prices are sky-high, and the Fed has only one tool to solve these problems. It is exactly that tool that is hurting the market the most. With all that being said, there are plenty of obstacles in our way until we enter bullish territory again.

The most important thing is to stay optimistic. Bitcoin is at $20.000 during one of the most difficult times we have witnessed for decades. A war in Europe, a trade war between global superpowers, and economical shifts. Still, BTC is worth five figures and the crypto market is maturing. While we cannot provide any insights into the future, we leave it up to your fantasy of what’s going to happen in terms of price movement once the market expects that some or even all of these problems are solved.

Featured articles
Four trading strategies for crypto
Bitcoin and Ethereum: what are the differences?
What determines the Bitcoin price?
Related articles
Small holders are stacking BTC at record pace

Nov 28, 2022

The current bearmarket is turning out to be a nice opportunity for Bitcoin believers who aren't wealthy. For many, the goal of becoming a wholecoiner, is a worthy endeavour. According to data from Glassnode, they are buying at a record pace.

Trade anytime, anywhere

Boost your trading impact and reaction time in over 80+ cryptocurrencies via instant access to your portfolio with the LiteBit app.

  • 2525 Ventures B.V.
  • 3014 DA Rotterdam
  • The Netherlands
More info
  • About LiteBit
  • Careers
  • Business account
  • Support
  • Sell
  • News
  • Education
Subscribe for updates

Sign up to stay informed via our email updates

Subscribe
Explore popular coins
© 2022 LiteBit - All rights reserved