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Crypto Stocks Soar As Bitcoin Reclaims The $20K Mark


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.

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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.

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