The leading cryptocurrency in terms of market capitalization has been in a sensational market correction for some time now as the upward trend continues.
Bitcoin‘s market valuation reached $47,000 on Monday following a remarkable spike in price, the first of its kind since the early highs of January.
The increase has put Bitcoin’s price action in a firm position above the previous week’s so far in 2022, the best performing record attained before the end of Q1.
Since January, Bitcoin has been trading way below $45,000, but a sudden breakout at $46,862 on Monday, as at press time, ensures that the price of BTC starts on a high for the last days of March. The pioneer crypto asset is volatile, but hitting a new high of $47,302 in the past 24 hours has profoundly impacted the market.
Rise of the Cryptos
According to CoinGecko, other top 50 digital assets also exhibit positive price performance alongside Bitcoin, bringing the market capitalization of the world’s cryptocurrency to nearly $2.2 trillion.
The market has a whole heave of a sigh of relief, and starting the week on a high note will likely catalyze further price consolidation.
Experts believe that the surge is a continuation of the earlier announcement by the U.S. Federal Reserve about increasing interest rates for the first time in an out of three years, which culminated in the spike in the price of cryptocurrencies.
Another interesting angle to the surge in market performances is the executive order signed by President Joe Biden on regulating the crypto industry, which was disclosed on March 9.
The cryptocurrency market has been moving on par with the stock market in recent weeks, positioning it as part of the global economic factors thanks to the war between Russia and Ukraine, which has increased volatility for both the digital currency industry and stock markets.
However, Bitcoin has had an up and down experience in recent weeks. Still, the last weeks of March have seen the pioneer digital token recover steadily to move within touching distances of coming close to its high recorded in January 2022.
Despite the inconsistency in price performance, Bitcoin has managed to stay above the red zone of January, which was $34,000, the lowest in more than six months.
Investing in cryptocurrency is a risk on its own, and only those with the risk appetite find a way to squeeze profits from the market. This is why experts recommend that investors invest less than 5% of their total portfolio. Investing all or a substantial part of a portfolio may likely lead to a massive loss.
A price drop should not be the only criteria not to invest, but experts believe that allowing a sudden price spike to change an investor’s long-term investment plan is a mistake.
More importantly, investors should not hurry to scoop a particular cryptocurrency just because there is a surge in price; investors must make decisions based on common sense before taking the plunge.