Cryptocurrency update | Bitcoin jumps to 6-week high, trades above $39,500 mark

Bitcoin | Representative image

World's most popular cryptocurrency bitcoin traded above $39,500 for the first time since June 16. This is the sixth consecutive day that the cryptocurrency is trading in green.

Currently (at 10:45 pm), bitcoin was trading at $38,912.39 with a 13.52 percent rise and a market capitalisation of $730.25 billion, according to cryptocurrency trader coindesk.com.  The highest 24-hour trading of bitcoin was recorded at $39,544.29. The volume of the popular crypto also rose to $42.03 billion in the 24-hour trading.

The price of the world’s oldest crypto on June 25 displays the largest single daily gain in over six weeks since it began rallying from July 21 onwards.

ALSO READ: Cryptocurrency Prices Today on July 26: Bitcoin, Ethereum surge more than 20% in a week

"This price action is aligning with what we’ve been seeing the past couple of weeks. Borrowing rates for USD have started to increase from its lows," coindesk.com quoted the head of capital markets at Maple Finance as saying.

“We’ve also been seeing a significant increase in demand for USDC (-0.07 percent) from institutional borrowers and the sentiment seems to be bullish following the news of Amazon participating in bitcoin (BTC, +11.61 percent),” Kim added.

Citing the reason for the continuous rally of the cryptocurrency, experts opine that reports of retail giant Amazon mulling to accept bitcoin payments by year’s end and minting its own token by 2022 has raised the bar of Bitcoin in the crypto trading market.

While other believe that big tech and finance players from the US markets move may have added fuel to the rise of Bitcoin in the crypto market.

"Most prominently, there were conversations held last week between Jack Dorsey, Elon Musk, and Cathie Wood at the Bitcoin Conference where they talked about where they see bitcoin and cryptocurrencies going with respect to their own organizations," the crypto trading website quoted Australian crypto exchange BTC markets CEO Caroline Bowler as saying.

Commenting on the recent Bitcoin jump, ZebPay Co-CEO Avinash Shekhar said, "We are always bullish on the fundamentals of Bitcoin. Price fluctuations like this are just a sign of an early market and it’ll be stabilized once the market matures. When you look at bitcoin, you are looking at an asset with innovative technologies like triple entry bookkeeping, decentralization, and a public ledger. The best part is that more upgrades are coming to this network to make it more efficient."

"When we say we are bullish on bitcoin, we are looking at the future potential of this asset and the strong fundamentals it holds. Also, if you look at the larger time frame, these small price fluctuations would be invisible and that’s why we recommend investing in bitcoin for the long run.
For the short term, we’re looking at the bitcoin price of above $42k to confirm a bull market based on the technical analysis by our traded desk,” he added.

As of 10:45 pm am on July 26, these are the prices of 10 largest cryptocurrencies (data from https://coinmarketcap.com):

Cryptocurrency prices | PC- coinmarketcap.com