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26 Jul 2021
3 min read

Bitcoin Surges 20% Over the Weekend, Zeros in on $40,000

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Key Takeaways

  • Bitcoin’s price reaches a five-week session high of $39,700 as market sentiment brightens
  • Amazon job listing, Twitter earnings call, and Elon Musk supposedly behind the crypto rally

In sharp contrast to Bitcoin’s performance just a week ago, the price of the digital currency surged 20% from Saturday to the current market price of nearly $39,000. Buoyed by renewed positive expectations, the leading crypto asset has been in a strong upside swing since Wednesday when a group of crypto proponents appeared for discussion in an online event called “The B Word”.

The group, including Elon Musk, Jack Dorsey, and Cathie Woods, promoted Bitcoin’s characteristics and expressed strong belief in its bright future ahead. Just a day before the event, Bitcoin slipped under $30,000 per token, its lowest level in one month.

After the encouraging comments by the tech mavens, Bitcoin’s price has been seeing a new top every following day. In a six-day winning stretch leading to today, the orange coin has rallied as much as 31%. The shifting market sentiment was a much-needed boost for crypto enthusiasts who struggled to deliver a solid move to the upside for nearly two months.

Today’s 16% surge to a session high of $39,700 is bitcoin’s best single-day gain since May 24. Ether, the second most valuable crypto-token, has also skyrocketed over the last six days. The Ethereum coin is higher by 32% Wednesday-to-date, currently trading at $2,360.

Apart from the online conference focused on Bitcoin and the positive viewpoints of the participants, two other events are largely credited for the impressive bitcoin performance in recent days. Square and Twitter CEO Jack Dorsey mentioned on Twitter’s second-quarter earnings call he expected bitcoin to have “a big part” in Twitter’s future.

Bitcoin Faces New Challenge

Adding to the upbeat market mood, Amazon listed a job posting on its website, saying it was seeking a Digital Currency and Blockchain, Product expert. “We’re inspired by the innovation happening in the cryptocurrency space, and are exploring what this could look like on Amazon,” a spokesperson for the company said in a follow-up statement.

Bitcoin now seems to have to deal with the challenge of overcoming the $40,000 threshold. This would be the coin’s third attempt to break that level after it tumbled to the low $30,000’s on China’s crackdown near the end of May.

Meanwhile, in stocks, equities on Wall Street hover at all-time highs reached Friday. Futures on Monday are fairly negative with S&P futures showing a loss at the open of about 0.30%. Dow futures are lower by 0.50%. Nasdaq futures are essentially flat.

This week brings a heavy list of corporate earnings reports. The world’s biggest tech companies are scheduled to publish their financials for the second quarter of 2021. Apple, Amazon, Facebook, Tesla, Microsoft, and Google-parent Alphabet are on the weekly earnings agenda. Investors are hoping the strong wave of financial results from the first quarter to carry over into the quarter ended June.

Market participants will also pay close attention to Federal Reserve Chair Jay Powell’s speech on Wednesday, at the end of a two-day FOMC policy meeting. Mr. Powell is scheduled to discuss the state of the economy, threatened by a surge in inflation. Investors hope to hear some insight into when and how the US central bank plans to ease its ultra-loose monetary policy.

In Europe, stocks notched an all-time high on Friday as the pan-European Stoxx 600 rallied over 1% to a fresh record of 461.51. On Monday, European bourses trade was moderately pressured.

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