Cryptocurrencies surge over the weekend: Bitcoin reaches a 10-day peak, while Chainlink rises by 7%
Cryptocurrency Market Surges: Bitcoin and Chainlink Lead the Way
In August 2022, the cryptocurrency market witnessed a significant surge, with Bitcoin (BTC) and Chainlink (LINK) leading the charge. The total crypto market cap has maintained above $4 trillion, a testament to the market's resilience.
The recent price increase of Bitcoin and Chainlink can be attributed primarily to several key factors. Strong institutional demand and increased inflows into Bitcoin Exchange-Traded Funds (ETFs) played a significant role. Approval of spot Bitcoin ETFs boosted institutional participation, enhancing market liquidity and confidence. Regulatory changes also allowed crypto assets to be included in 401(k) retirement accounts in the U.S., making Bitcoin more accessible to mainstream investors and retirement funds.
Growing optimism about Federal Reserve interest rate cuts encouraged investors to seek hedges against inflation such as Bitcoin. The anticipation of rate cuts and a generally dovish monetary policy stance attracted both retail and institutional players. The April 2024 Bitcoin block reward halving reduced future supply, contributing to bullish sentiment. Political developments, including the 2024 U.S. presidential election outcome favoring a pro-crypto administration, further fueled positive investor sentiment.
Despite a price pullback after mid-August's record highs (Bitcoin peaked around $124,000 on August 14), on-chain data showed continued accumulation by large wallets, indicating long-term confidence among major holders.
While the sources do not detail Chainlink’s exact catalysts in this period, it generally benefits from broader positive momentum in the cryptocurrency market, especially in DeFi sectors where Chainlink's oracles are integral. Rising adoption in decentralized finance often correlates with price uptrends for LINK.
In the past several hours, Bitcoin breached the $118,000 line, marking a ten-day high at around $118,500. However, the dip was due to ongoing political tension between some Great Powers, including the movement of nuclear submarines. Despite this, Bitcoin is still around 1% up on the day despite losing some ground since reaching the peak.
In the altcoin market, LINK has gained roughly 7% and is trading above $22, making it today's top performer from the larger-cap alts. XRP, BNB, SOL, DOGE, ADA, BCH, HBAR, XLM, and SUI are slightly in the red following the recent rallies. The dominance of Bitcoin over the alts has risen to 58.4% after a drop to 58% yesterday. Ethereum (ETH) has managed to defend that level today. By last Friday, bitcoin was knocking on the $117,000 door. ETH skyrocketed to its highest price levels since late 2021 at over $4,200 yesterday.
The total crypto market cap is $200 billion above the low reached on Thursday. It's important to note that after the peak in mid-August, a correction occurred due to unexpected macroeconomic data like a higher-than-expected Producer Price Index (PPI), which increased risk aversion among investors and caused some price pullbacks.
In summary, Bitcoin’s and LINK's price increases in August 2022 were mostly driven by institutional interest enhanced by regulatory acceptance, anticipation of monetary easing, supply-limiting events like halving, and ongoing accumulation despite short-term volatility.
[1] Cointelegraph [2] Decrypt [3] CNBC [4] BitInfoCharts [5] Santiment
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