Cardano Rises 14%; Toncoin Jumps 27% As Bitcoin Surpasses $20K; Here Is What Led to the Rise and What Analysts Say

Bitcoin breached the $20,000 mark, ending its longest stretch below that price level since the cryptocurrency initially crossed the barrier in late 2020.

The biggest cryptocurrency by market value increased as much as 5.3% to $20,412 on Tuesday, marking the highest gain in a single day since September 27. The coin has deviated from its usual volatility by trading below $20,000 for almost three weeks.

Cardano was a top gainer among the top ten cryptocurrencies rising as much as 15%. This follows after Onchain analytics firm, Santiment, noted that Cardano has never been undervalued the way it was since January 2019.

Toncoin was likewise a top gainer, up 27% at the time of publication. Recently, Telegram announced the near completion of its username auction marketplace. The announcement also mentioned the marketplace would leverage the Ton blockchain infrastructure. This bullish news helped push Ton’s price over 30% on the day.

Ether gained up to 12.8% to trade at $1,525, its highest price in more than a month, as other digital assets followed. Despite the advances, Bitcoin’s price is still at a multi-month low as central banks raise interest rates to tame the inflationary trend. Since the beginning of the year, Bitcoin’s value has decreased by around 60%.

Here Is What Led to the Rise and What Analysts Say

On Tuesday, US stocks increased as well as investors considered the risk to economic growth and mixed company profits. US consumer confidence is declining, according to recent economic data, a hint that consumers may reduce their spending due to recessionary fears and ad-hoc interest rate hikes. It will be interesting to see if bitcoin can continue to trade beyond $20,000.

The psychological impact of $20,000 has some individuals paying attention, according to Katie Stockton, co-founder of Fairlead Strategies. According to the models used by her company, she stated that in order to “confirm a modest breakout,” she would require “repeated daily closes” above about $19,600.

According to a note by Vetle Lunde and Bendik Norheim Schei of Arcane Crypto, Bitcoin’s 30-day volatility is close to a six-year low, which may indicate that a breakout is imminent. Those levels were last attained in the summer of 2020. Four days went by during that period when Bitcoin maintained levels below its current price before “the price surged up,” according to the note.

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