Bitcoin, the world’s largest cryptocurrency, managed to rise above $25,000 today for the first time since June 13. Although at the time of writing, the price has fallen back to $24,127, showing that the asset is not yet ready to hold its latest highs. The current price drop is largely in line with the broader market gains and losses in the financial markets, with the S&P 500 down 0.31% and the FTSE flat.
Bitcoin has waned in recent months, hitting its lowest price on June 18, when the price fell to around $17,500. Since then, the price has slowly started to recover to its current level. Despite its new short-term high today, there is still disagreement in the cryptocurrency community as to whether this is a true recovery from the bottom or just a long trap.
While bitcoin is much more volatile than the stock market, it generally moves in the same direction. Uncertainty in international markets and investment sentiment is becoming more prominent by the day as people face high energy prices and the onset of winter in the northern hemisphere.
Bitcoin’s price has been getting a boost since June, thanks to the second largest cryptocurrency. Ether is planning a massive upgrade, which is expected to take place later this year. It will move Ether from an energy-intensive proof-of-work model to a proof-of-stake model.