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Bitcoin Tops $66K as Cryptos Rally Amid Global IT Outage; Solana’s SOL Leads Altcoins

Jul 18, 2024
  • Bitcoin hit a one-month high at $66,700, up 4% over the past 24 hours.
  • Solana rose 8%, topping $170 for the first time since early June.
  • Crypto observers highlight the resiliency of decentralized blockchains as a malfunctioning software update caused worldwide disruptions in IT systems.
As a seasoned financial analyst with over a decade of experience in traditional markets and digital assets, I’ve witnessed numerous market fluctuations and disruptions during my career. Today’s crypto rally, which saw bitcoin reaching a one-month high and Solana topping $170 for the first time since early June, is an interesting development in this dynamic space.As a researcher studying the cryptocurrency market, I observed that the upward trend in prices resumed on Friday. Bitcoin (BTC), in particular, reached its highest point in nearly a month during this time. Simultaneously, the global community dealt with a significant IT disruption.

During early U.S. trading hours, Bitcoin surpassed $66,000 for the first time since June 17, reaching a peak of $66,700 in the afternoon session. BlackRock’s spot bitcoin ETF (IBIT) experienced significant trading activity during this price increase. Currently, Bitcoin is valued at approximately $66,500, marking a 4% rise over the previous 24 hours.

Among major altcoins, Solana (SOL) stood out with a noteworthy 8.5% growth during this timeframe, pushing its price above $170 for the first occasion since early June. This surge surpassed the gain of the broader CoinDesk 20 Index (CD20), which registered a 4.3% rise.

Earlier in the week, cryptocurrencies followed the downturn of US stocks and experienced a slide. Conversely, on Friday, these digital currencies rallied despite the persistent loss for major equity indices.

At 1 p.m. ET, the technology-focused Nasdaq Composite index dropped by 0.8%, and the extensive S&P 500 index shed 0.6%. Meanwhile, gold experienced a significant decrease of more than 2% throughout the day after reaching an all-time high earlier this week.

In the aftermath of a global computer disruption instigated by a software update from cybersecurity company CrowdStrike, causing aviation, banking, and commercial sectors to grind to a halt, cryptocurrency analysts highlighted the robustness of decentralized systems such as public blockchains in contrast to centralized networks.

Charles Edwards, the founder of Capriole Investments, a crypto hedge fund, observed an alignment between bitcoin’s swift rise and the commencement of the U.S. stock market trading sessions. This correlation might hint at institutional investors entering the bitcoin market.

“Has Bitcoin all of a sudden been recognized as a reliable, decentralized store of value by institutions amidst the failure of global tech and banking systems, reminiscent of Microsoft’s infamous blue screen of death?”

Bitcoin targets $100,000 by year-end

Over a longer period, Bitcoin’s price hovers near the middle of a broad range between $56,000 and $73,000 on the chart. The current market situation may keep prices within this range in the short term. However, traders are growing optimistic about a potential breakout leading to new record highs closer to the U.S. elections in November, according to QCP’s recent analysis. Institutional investors have shown significant interest in buying December $100,000 Bitcoin call options.

As a crypto investor and analyst at Steno Research, I’m optimistic about the second half of this year for crypto assets. Several positive factors are lining up to support this bullish view. For one, I anticipate U.S. interest rate cuts, which could make Bitcoin and other digital currencies more appealing as potential store-of-value alternatives to traditional assets.

“Bitcoin at $100,000. Ethereum at $6,500,” he said about his price targets.

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2024-07-19 20:58