Bitcoin successfully crossed the $22,000 mark today after struggling to reach the position for more than two weeks. BTC also climbed 9.76% in the last 24 hours. Bitcoin’s positive performance has made the entire crypto market turn green and a handful of tokens are up double digits. The leading crypto is trading in the green for three consecutive days for the first time in a month. The sudden spike is making investors wonder ‘Why is Bitcoin rising today?’.
Why Is Bitcoin Rising Today?
The U.S stock market stabilized this month in July and it has mostly traded in the green the entire week. The first half of 2022 saw sell-offs but the second half is receiving an inflow of funds. The Nasdaq recorded four successive high closes this week sending optimistic signals across the market. However, the U.S stock market is yet to see five successive closes this year with this week’s performance being the highest.
Bitcoin and the cryptocurrency market are riding on the successive stock market wave and are delivering gains this week. The crypto market moves in tandem with the stock market and mostly mirrors its performance in the indices. Moreover, the overall crypto market reclaimed the $1 trillion market cap as the trading volume spiked nearly 7% today.
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On-chain and metrics firm Santiment revealed that Bitcoin’s “buying power is rising” and BTC is experiencing fund inflows this week. “Bitcoin dominance is back on the menu on a healthy Thursday price surge. We’ve seen BTC continue to move from exchanges for nearly 4 years, and this trend hasn’t stopped even with the 8-month price retrace. Meanwhile, USDT buying power is rising.”
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Will the Markets Continue Rising?
Despite both the stock and the crypto market seeing a spike this week, it is advised to remain cautious before taking an entry position. The U.S jobs report will be out today that will be a deciding factor for the markets to continue to spike or slump.
Bloomberg has predicted that the jobs report will show a “natural slowdown” spread across industries. If Labor Department’s report shows that the job market is weak, the markets could begin to slump in fear of a recession.
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At press time, Bitcoin was trading at $21,851 and is up 7.6% in the 24 hours day trade. BTC is also up 11.1% in the last 7-trading days.