Bitcoin and Ethereum, the world’s largest crypto assets by market cap respectively, are experiencing a new era of optimism from crypto investors as their price has surged back to levels not seen since May.
According to CoinMarketCap, Bitcoin (BTC) gained 3.1% on Sunday, August 8, surging above $45,000. BTC/USD pair recorded a 24-hours high of $45,282 on Sunday. Bitcoin was last seen at above $45,000 on May 18th, 2020. Bitcoin has returned to this price level after almost 80 days. Bitcoin has added 9.34% in its price in the last 7 days.
Ethereum (ETH), powered by the recent London hard fork upgrade, also crossed $3,000 on Sunday, the price level that was last seen on May 19th. According to CoinMarketCap data, Ethereum posted 3.5% gains on Sunday to reach a 24-hours high of $3,184.
This shows that cryptocurrencies are showing signs of life again after pulling back significantly from record highs seen during April and May.
During these months, the crypto market was enjoying a massive bull run fueled by strong institutional adoption, especially by Tesla, and an exploding DeFi and NFT market. This bull run was reversed into a bear run after Tesla’s U-turn on Bitcoin as a payment method.
The recent Chinese crackdown on the Bitcoin mining industry gave a further blow that pushed down Bitcoin to around $30,000.
Much is Yet to Come in 2021
Now the Chinese regulatory crackdown has cooled down, a mood of optimism appears to have returned to cryptocurrency markets. And like always, crypto analysts and observers are focusing on Bitcoin’s next moves.
Many analysts believe that Bitcoin has now established $30,000 as its base price. This means that Bitcoin will be smashing $100K very soon. This seems unlikely in 2021 but some upcoming events could push BTC to near $100K.
One of these events is the upcoming Taproot upgrade which will be activated in November 2021 at a Bitcoin block height of 709,632. As Crypto Economy reported, the recent Ethereum upgrade London on August 5 has helped the native ETH coin to cross $3000 which was trading around $2500 before the upgrade.
The Taproot upgrade is expected to put a much greater impact on the Bitcoin price. Tesla resuming Bitcoin as a payment option could be another much-anticipated event for the crypto market.
Furthermore, the Ethereum transition for PoW to PoS model is also expected to happen in the last part of 2021. So, much is yet to come for Bitcoin, Ethereum, and the overall cryptocurrency market in 2021.