Bitcoin has managed to log its best month since October
Bitcoin, the world’s largest cryptocurrency, has managed to enter its best month of the year, adding nearly 27% in July.
The strong rebound came after the flagship cryptocurrency recorded its worst quarter in more than a decade.
It is worth noting that bitcoin is closely tied to the US equity market, which is approaching its best month since 2020. Over the past month, cryptocurrency prices have coincided with the stock market indices.
Last week, the flagship cryptocurrency rallied sharply higher after the U.S. Federal Reserve decided to go with a widely anticipated 75 basis point rate increase even though some analysts expected a massive 100 basis point hike.
Has the crypto winter started to melt?
Edward Moya, an analyst at market research firm Oanda, believes that the crypto winter is already melting, which will allow more capital to enter the space.
As reported by U.Today, Binance CEO Changpeng Zhao recently suggested that the growing stablecoin dominance was a bullish development since it meant that a lot of liquidity was sitting on the sidelines. Now that some selling pressure is easing up, cryptocurrency investors are ready to deploy more capital.
Nevertheless, it is too early to predict the start of another cryptocurrency spring. Bitcoin is still 66% down from its all-time high of $69,044, even after its stellar performance in July, which means it is deep in bear territory.
The “fear and greed” index, which is used for gauging market sentiment based on a variety of factors, is still flashing fear despite recovering from recent lows.
