After falling heavily since the start of 2022, the crypto market has had its best month of the year behind it.
– Despite the rise in cryptocurrency in July, the bitcoin price is still down by more than 50 percent in the past year, and volumes are weak. But we think it seems that the market has reached a bottom, says analyst at JP Morgan Kenneth Worthington according to CNBC.
A price index for the 100 largest cryptocurrencies showed an increase of 36 percent in July. In June, the bitcoin price fell below $18,000, which was the lowest level since December 2020. At the same time, ethereum sank to its lowest since January 2021, before the rate jumped 70 percent in July.
Lower energy use
One of the drivers behind the strong rise in ethereum was the so-called “ethereum merge”. This means that the energy consumption that can be linked to the currency must be reduced by as much as 99 per cent. This must be done by September, and many expect the price to rise considerably.
Lesser than expected consequences from the collapse of Terra have also contributed to the price rise according to JP Morgan.
On Wednesday evening, ethereum rose by 6.2 percent to a price of 1,808.5 dollars. Bitcoin, on the other hand, rose by 1.78 percent to $23,565.
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