Bitcoin Soars to a 2022 Peak, Boosting Crypto Markets – Cryptocurrency News – via XM.com

Bitcoin's price has been rising over the last week, and it is now trading comfortably over the $47,000 barrier. This current increase may be linked in large part to a wave of short position liquidations on cryptocurrency exchanges, with transaction volume exceeding $120 billion in the last 24 hours. Furthermore, most major altcoins soared to new highs as a result of Bitcoin's big upward breakthrough. Is this the start of a bullish cycle for cryptocurrencies, even though the dust from the conflict has yet to settle？

Demand is boosted by widespread crypto use in the financial sector.

Many well-known financial institutions launched measures last week to encourage the usage and trade of cryptocurrencies. More precisely, the world's largest investment bank, Goldman Sachs, redesigned its site to highlight cryptocurrency, the metaverse, and digitalization as the most recent and innovative market trends. This action drew a lot of attention from investors and social media users, who noted that the bank has gone a long way from its initial judgment that Bitcoin should not be regarded as an asset class.

Furthermore, Israel's biggest bank, Leumi, stated last Thursday that it would be the first Israeli bank to provide cryptocurrency trading to its customers. Given that Israel does not yet have a legal framework for cryptocurrencies, this action demonstrates large institutions' readiness to speed crypto adoption to avoid being left out of a rapidly emerging sector.

El Salvador's president announces the first Bitcoin bond issue.

El Salvador hopes to be the first government to issue a Bitcoin-backed bond to support the development of the first “Bitcoin City.” The primary goal is to harness geothermal energy from volcanoes to power Bitcoin mining as well as the city's infrastructure. This might be a significant milestone for the crypto field since authorities are putting pressure on miners to use more sustainable and ecologically friendly power sources.

More and more companies are introducing cryptocurrency functionality.

LG Electronics, a South Korean technology juggernaut, revealed ambitions to extend its companies into the cryptocurrency and blockchain industries during its most recent annual general meeting on Thursday. Their particular goals include the establishment of a cryptocurrency exchange market and the development of blockchain-based technologies.

In other developments, the non-profit Luna Foundation Guard (LFG) has invested more than $1.1 billion in Bitcoin to safeguard the long-term viability of Terra's algorithmic stable currency (UST). Furthermore, the business has pledged to collect $10 billion in Bitcoin for project reserves, while the firm claims to have $3 billion in dry powder to spend immediately but is presently experiencing technical difficulties.

Can Bitcoin's upward trend continue？

Technically, Bitcoin's price has slashed through the top threshold of its current sideways motion. If the positive forces continue, the price might face a strong resistance near the $48,250 level, which coincides with the 200-day simple moving average.

On the other side, if investors who bought into the market during its recent bull run reduce their holdings to prevent their losses, the critical $45,000 level may now function as a stabilizing floor for the price.