Bitcoin rises back above $25,000 for the first time in two months, according to the Spectator Index, as crypto prices show signs of recovery from the recent market crash, but still a far cry from its all-time high of $69,000 in November.
The crypto market plunged in May and June as worries about high inflation and Federal Reserve interest rate hikes prompted investors to ditch risky assets. Following the collapse of a major pair of tokens, some cryptocurrency lenders froze customer withdrawals, and several crypto firms have cut jobs.
Reuters Graphic: Bitcoin So Far In 2022
Prices have partly recovered, with bitcoin gaining 17 per cent in July. While the Spectator Index tweeted that the crypto hit a two-month high of $25,000 on Sunday, it is still well below its all-time high of $69,000 in November.
BREAKING: Bitcoin rises back above $25,000 for the first time in two months— The Spectator Index (@spectatorindex) August 14, 2022
That comes days after Reuters reported that Cryptocurrency derivatives trading on centralised exchanges rose to $3.12 trillion in July, a 13 per cent monthly increase, researcher CryptoCompare said on Thursday, as crypto prices show signs of recovery from the recent market crash.
The derivatives market now makes up 69 per cent of total crypto volumes, up from 66 per cent in June, and helped push overall crypto volumes on exchanges to $4.51 trillion in July, CryptoCompare said.
Derivatives exchanges traded as much as $245 billion on July 29, 9.7 per cent more than June's top daily high of $223 billion.
But spot cryptocurrency trading edged lower to $1.39 trillion in July, a 1.3 per cent monthly decline and the lowest since December 2020, CryptoCompare said.