The past week has been quite eventful for the cryptocurrency market, with some of the top players experiencing notable price hikes. Bitcoin and Ethereum, in particular, experienced significant rallies that have sparked the interest of investors and enthusiasts alike. In this article, we will delve into the details of these price rallies and what they mean for the future of cryptocurrencies.
Bitcoin Finally Crosses the $30,000 Support Barrier
Bitcoin has been struggling to cross the $30,000 support barrier for months, but it finally managed to do so last week. The cryptocurrency rose by 7.6% to reach its current price of $30,146. While this might not seem like a big deal, it is a significant milestone for Bitcoin as it has been hovering around the $30,000 mark for quite some time. Additionally, Bitcoin has managed to hold onto its gains, which is a good sign for investors.
One of the key drivers of Bitcoin’s surge in value was the release of the latest U.S. inflation numbers by the Bureau of Labor Statistics. The Consumer Price Index for the month of March revealed that inflation was lower than forecasts had anticipated. This latest reading is a strong indicator that the Fed could back down from its policy of raising interest rates, which it pursued throughout 2022, making it more expensive to borrow money and ultimately turning investors away from risk-on assets like crypto and stocks.
Ethereum’s Shapella Upgrade Sparks Excitement Among Investors
Ethereum, Bitcoin’s closest rival, also experienced a surge in value last week. The cryptocurrency rose by 10.1% to hit $2,061, and briefly broke past $2,100 for the first time in eleven months. The hype surrounding Ethereum was mainly due to the launch of the long-anticipated “Shapella” upgrade, which went live on Wednesday.
“Shapella” refers to two upgrades, Shanghai and Capella, which have now unlocked withdrawals of ETH staked on the network at the execution layer and the consensus layer, respectively, freeing up $34 billion in staked ETH in the process. The execution layer executes and records Ethereum’s transactions in real-time, while the consensus layer validates those transactions. Every validator has staked 32 ETH to activate their software and is rewarded with ETH for confirming transactions.
Solana, Cardano, and Other Cryptocurrencies Also Experience Gains
While Bitcoin and Ethereum stole the headlines last week, other cryptocurrencies also experienced notable price rallies. Solana, for instance, experienced the biggest rally among the top thirty cryptocurrencies, rising by 16% and currently trading for $23.91. This was largely due to the release of Saga, an Android phone powered by the Solana blockchain, on April 13.
Cardano, OKB, Aptos, and NEAR Protocol also experienced gains of 11.9%, 10%, 8.4%, and 9% respectively. This is a testament to the growing popularity of cryptocurrencies among investors and the wider public.
The past week has been an exciting one for the cryptocurrency market, with Bitcoin and Ethereum experiencing notable price rallies. These price hikes have been driven by a number of factors, including the release of new upgrades and lower-than-expected inflation numbers. While there were no casualties among any of the top 100 cryptocurrencies by market capitalization last week, investors need to exercise caution and do their due diligence before investing in any cryptocurrency. Nonetheless, the future of cryptocurrencies looks bright, and we can expect to see more exciting developments in the months and years ahead.
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