As investors were eager to increase their risk exposure, Bitcoin opened February in the green. It is a historically strong month for risky assets.
The oldest cryptocurrency, according to CoinDesk data, was trading at around $39,000 at the time of writing. Additionally, it is up around 1% in the past 24 hours. Ether followed suit by trading at $2,800 nearly 4% up from the previous day.
In recent weeks, new investors may have entered the cryptocurrency market. The statement is according to Danny Chong, co-founder of Binance Smart Chain-based yield-enhancing asset tracker Tranchess.
Investor’s Market Analysis
“The crypto market is substantially smaller in market capitalizations than the typical financial market,” Chong said through a spokesman. This allows tiny changes to have a more obvious impact. A market rebound can come rather rapidly if market emotions turn positive. Additionally, it comes with a rapid support at current levels and extra liquidity from new and current customers.
Bitcoin trading activity on major centralized exchanges on Tuesday was somewhat lower than the previous day, according to CoinDesk data. The fact that many traders and investors are taking time off to celebrate the Chinese New Year/Lunar New Year. Major Asian markets are expected to stall this week.
China’s Continued Ban
Despite the fact that crypto trading and mining are outlawed in China. A popular actor featured a random token during China’s Spring Festival Gala. And with that, the token’s value rose tenfold in only hours. Its value has decreased dramatically since then.
Also, many crypto analysts believe China’s market is dormant. Specially since exchanges such as Huobi have barred mainland Chinese consumers. This incident illustrates that many Chinese people are still active in the crypto community.
What about Bitcoin?
Bitcoin (BTC) is maintaining support over $37,000 but within a narrow trading range. In the past 24 hours, the cryptocurrency has risen somewhat, and in the last week, it has risen by 3%. Buyers will need to break through the $40,000 level to stop the intermediate-term slump that began in November.