• News
  • Entertainment
  • Finance
  • Crypto
  • Casino
  • Health

Crypto Stocks Soar As Bitcoin Reclaims The $20K Mark

17.2KShares
235.9KViews

Crypto stocks soar as bitcoin reclaims the $20k mark. For the first time in about three weeks, Bitcoin (BTC) has increased in value by almost 5% to over $20,000, and ether (ETH) is up just shy of 11% to its highest price since the Merge, driving a broader rally in cryptocurrencies and related stocks. Coinbase (COIN) and MicroStrategy (MSTR) are two names on the rise, both up 10%.

Many crypto miners are performing even better, with Hut 8 (HUT), Bitfarms (BITF), Marathon Digital (MARA), and Riot Blockchain (RIOT) all up 11%-18%. Cathie Wood's ARK Fintech Innovation Fund (ARKF) added 10,880 shares of Coinbase to its holdings on Monday, bringing the fund's stake in the stock to $60.5 million, or roughly 8% of its weight.

It was ARK's first purchase of COIN since the asset manager sold shares in July, citing an SEC investigation into the company. Crypto is outperforming traditional equity markets, with the Nasdaq up 1.6% and the S&P 500 by 1.1%. The idea that the US Federal Reserve is nearing the end of its rate hike cycle is at stake. Bond yields and the dollar are both falling sharply in Tuesday trading.

Factors Affecting The Value Of Cryptocurrency

Bitcoin became available to the public in 2009. Around 2010, when the price of one token went from a few cents to $0.09, its popularity began to grow. Since then, its price has gone up by tens of thousands of dollars and has sometimes gone up or down by thousands of dollars in just a few days. There are many reasons why Bitcoin's price changes so much.

COPYRIGHT_BP: Published on https://bingepost.com/crypto-stocks-soar-as-bitcoin-reclaims-the-dollar20k-mark/ by Kelvin Farr on 2022-10-26T12:41:08.208Z

Moreover, unlike the Canadian dollar, which is backed by the Bank of Canada, most cryptocurrencies are not backed by a central agency. Consumers are more likely to trust the value of a currency if it is backed by the government.

However, many of the 13,000 cryptocurrencies in the world don't have any government backing, so they have to get their value from somewhere else. Here are some of the factors that affect the value of cryptocurrency.

Demand And Supply

The value of a cryptocurrency is determined by supply and demand. When demand grows faster than supply, prices rise. A currency's demand can also go up as it becomes more popular or useful, especially if it starts to be used as an investment.

Cost Of Production

A "mining" process creates new cryptocurrency tokens. The following block on the blockchain must be verified by the miners using a computer. The more miners compete to solve a challenging math problem in order to verify a block, the harder it is to mine a particular cryptocurrency.

As a result, mining becomes more expensive as the team requires stronger machinery, like computers, to mine effectively. The value of the cryptocurrency rises in tandem with rising mining costs.

Competition Among Different Types Of Crypto

There are at least 13,000 different types of cryptocurrencies, with more being developed all the time. It is simple to get started, but it is difficult to make them work because they must build a network of people who use that cryptocurrency.

If the currency has a useful application on the blockchain, it can quickly build a network, especially if it fixes a problem that a competitor has. If a new competitor gets a lot of attention, it drives down the value of an existing competitor and raises the value of the new currency.

Node Count

You can find out how strong a community is by looking at how many active wallets are on the same network. A high count means that the community is stronger and that the currency is more likely to be able to handle a crisis. By comparing the total market capitalization to a popular currency, you can see how the number of nodes affects price.

People Also Ask

What Was 1 Bitcoin Worth At Its Highest?

Bitcoin BTC/USD price history up until October 20, 2022. The price of Bitcoin (BTC) reached an all-time high in November 2021, with values exceeding $65,000 USD in November 2021. The price increase was linked to the launch of a Bitcoin ETF in the United States, while others in 2021 were due to Tesla and Coinbase events, respectively.

What Will Bitcoin Be Worth At The End Of 2022?

Bitcoin price forecasts for 2022 range between $10,000 and $28,000.

What Is The Best Cryptocurrency To Invest In 2022?

In a crowded cryptocurrency field, these seven cryptocurrencies stand out:

  • Filecoin (FIL)
  • Cosmos (ATOM)
  • Binance Coin (BNB)
  • Avalanche (AVAX)
  • Solana (SOL)
  • Ether (ETH)
  • Bitcoin (BTC)

Final Thoughts

Early Friday, Bitcoin (BTC) jumped 8.26% to break through the $20,000 level and lead the recovery of the entire cryptocurrency market. The biggest cryptocurrency by market cap fell as low as $18,644 on Wednesday, and most of its trades yesterday took place between $19,200 and $19,300. The article also talks about the things that affect how much a certain cryptocurrency is worth.

The factors that were mentioned in this article were demand and supply, production costs, competition among different types of cryptocurrency, and node count. If you know what factors affect its market price, you can decide if you want to invest in it, trade it, or just keep an eye on it.

Share: Twitter | Facebook | Linkedin

About The Authors

Kelvin Farr

Kelvin Farr - Although I don't believe Bitcoin to be the future for sure, I do believe it has the potential to be. I only want to comprehend the nature of cryptocurrencies and how they operate rather than really owning any.

Recent Articles

  • Top 10 Best Movies About Heaven

    Movies

    Top 10 Best Movies About Heaven

    Heaven movies are a popular genre in the film industry that depicts the concept of the afterlife and the idea of an existence beyond our physical realm. These movies usually explore the idea of the afterlife and depict what it might be like.

  • Discord Hentai Bot - How To Stay Safe On Discord?

    Anime

    Discord Hentai Bot - How To Stay Safe On Discord?

    One of the most prevalent examples of this abuse is the Discord Hentai Bot, which automatically shares pornographic and sexually explicit content in channels without warning or consent. The widespread use of such bots has led to concerns about child safety and online harassment within the Discord community.

  • Top Amazon Deals For Travelers In May 2023

    Deals

    Top Amazon Deals For Travelers In May 2023

    Are you planning your next adventure but don't want to break the bank? Look no further than Amazon, where you can find a wide range of travel essentials at affordable prices. Here are some of the best Amazon deals for travelers in May 2023.

  • Best 12 Depression Movies On Netflix

    Movies

    Best 12 Depression Movies On Netflix

    Depression is a serious mental health condition that affects millions of people worldwide. While it can be a difficult topic to explore, movies about depression can offer a unique perspective on the experience of living with this condition. Fortunately, there are many depression movies on Netflix that tackle this topic in a thoughtful and nuanced way.

  • Tidal-GUI - A Graphical User Interface For Tidal Music Streaming Service

    Music

    Tidal-GUI - A Graphical User Interface For Tidal Music Streaming Service

    Tidal is a premium service that offers high-quality audio and video content, but it doesn't have a desktop app for users to download music or manage their playlists. This is where Tidal-GUI comes into play.

  • Mekanism Anchor Upgrade - Enhancing Your Minecraft Experience

    Games

    Mekanism Anchor Upgrade - Enhancing Your Minecraft Experience

    If you are a Minecraft player looking to streamline your gameplay and optimize your experience, look no further than the Mekanism Anchor Upgrade. This is a popular mod for Minecraft that introduces a variety of new machines, tools, and systems to the game.

  • Lil Tjay Height, Birthdate, Age, And Professional Accomplishments

    Hollywood

    Lil Tjay Height, Birthdate, Age, And Professional Accomplishments

    Lil Tjay has left his imprint on the music industry with a number of songs that are widely famous and have had millions of views as well as an EP that was released in 2018. Due to his fame, a lot of admirers are interested in learning about Lil Tjay height, birthdate, age, way of life, and professional accomplishments.

  • ACL4SSR - Customize ACL4SSR Rules For Specific Use Cases

    Technology

    ACL4SSR - Customize ACL4SSR Rules For Specific Use Cases

    ACL4SSR is an open-source project that provides a set of access control rules for ShadowsocksR (SSR), a popular secure proxy protocol. The main purpose of ACL4SSR is to allow users to access blocked websites and services by creating rules that whitelist or blacklist specific domains or IP addresses.

  • Haiku Generator - The Beauty Of Haiku Poetry

    Technology

    Haiku Generator - The Beauty Of Haiku Poetry

    In modern times, technology has made it easier for people to create haikus with the help of a haiku generator. These tools use algorithms to generate haikus based on certain keywords or themes.

  • Best 10 Kidnapping And Hostage Movies On Netflix

  • President Zelensky Says Ukraine Requires Additional Time For Counter-Offensive

  • 120V LED Puck Lights - Efficient Lighting Made Easy

  • Path Of War Errata - An In-Depth Look At The Path Of War Errata

  • 150 Classic Game Tabletop Arcade - Relive The Retro Era With It