Bitcoin's meteoric rise began in the middle of last week ahead of The B Word conference. At an event dedicated to cryptocurrencies, BTC received support from Elon Musk's speech.
During his speech, Musk has announced for the first time that SpaceX owns bitcoin. He also spoke about Tesla's intention to resume accepting the main cryptocurrency when its mining becomes more environmentally friendly.
On Saturday evening, BRC reached the high of July 12. It rose by 7%, exceeding the $34,000 level. The following day, bitcoin continued its steady rise. On Monday night, its price soared above $38,000.
Yesterday, bitcoin jumped by almost 12%. This is the fastest daily growth of the coin since February 8. The digital asset rose by more than $4,000, pushing higher its market capitalization. This morning, it exceeded $719 billion.
At the same time, the total market capitalization of all cryptocurrencies has also edged higher. It has grown by more than 9%. Now, it totals $1.52 trillion.
Almost all digital coins included in the top 10 by market capitalization demonstrate a positive dynamic on Monday. So, ether rose by more than 7% to $2,332. Cardano gained more than 10%, reaching the $1.35 level. Dogecoin increased by more than 14% and amounted to $0.227.
Analysts explain such a surge in the crypto market with a positive fundamental background. Now, digital currencies are rallying not only because of Elon Musk's speech at the last conference but also amid rumors around Amazon's plans on cryptocurrencies.
Yesterday, some reports stated that Amazon was planning to accept bitcoin payments by the end of the year.
Such speculation did not arise out of thin air. Last week, Amazon published a new vacancy. The company needs a specialist in blockchain and digital currencies.
Rumors that the biggest US retail giant may accept bitcoin as a means of payment have been going around for a long time. However, Amazon has denied them every time.
This time, investors decided not to wait for official reports and made bullish calls on BTC. Currently, the likelihood that Amazon may start working with BTC is quite high. More and more major players consider new functions and payment options concerning digital assets.
Despite positive fundamental factors, experts warn that the negative ones still prevail. In particular, the crypto market is rather sensible to news on China's tightened control miners.
In this regard, the amount of computing power that is used to service the digital coin network continues to fall. This means that traders should not expect a miracle in the near future. Analysts believe that the time of the bulls has not yet come and bitcoin will not be able to stay above $30,000 for a long time.
Many experts are skeptical about the current BTC rally, considering it short-term. Therefore, most forecasts for the current week are still negative. Bitcoin is predicted to fluctuate in the range of $30,000.
Meanwhile, a downward trend may continue in early August. Moreover, bitcoin risks returning to the low of $25,000 again. In autumn, BTC may finally recoup losses and develop a long-term rally.
This is possible under two conditions: if the hashrate of the network begins to increase and if the US does not crack down on cryptocurrencies. Last week, US Treasury Secretary Janet Yellen called for a quick adoption of stablecoin rules.