Bitcoin is experiencing an impressive rally in mid-August, breaking through $ 48,000 this weekend and raising the market value of the cryptocurrency by more than $ 2 trillion.
The leading digital asset managed to reach $ 48,126.47 on Saturday. Since mid-May, this has been the highest level.
CoinMarketCap reports that the crypto market sees a market capitalization of $ 2 trillion for the first time in three months.
The positive price dynamics in August came after Bitcoin's significant sell-off in June and July when the popular cryptocurrency fell below $ 30,000 after reaching April's record highs of 65,000.
Some analysts warn that it is not worth actively celebrating bitcoin's bullish victory yet, saying that another correction is possible.
According to Craig Erlam, Senior Market Analyst at OANDA Europe, Bitcoin has hit new highs once again without a corresponding surge in momentum, which is not ideal. The cryptocurrency lacks momentum to get it back above $ 50,000.
Bitcoin was able to ignore negative news last week, sharply moving towards $ 50,000.
Chairman of the US Securities and Exchange Commission (SEC) Gary Gensler once again stressed that the SEC needs powers, especially when it comes to crypto exchanges. He added that one of the biggest problems that worry him is stablecoins.
The cryptocurrency was also shaken by the news about one of the largest thefts in the world of decentralized finance. More than $ 600 million was stolen from the Poly Network blockchain site, as hackers took advantage of a vulnerability in the system and stole thousands of digital tokens, including Ethereum. However, in an unexpected move, the hackers returned almost everything that was stolen.
One popular crypto trader, Scott Melker, describes this cryptocurrency rally as an approximation of prices to the actual value.
He said that the price is actually catching up with the cost due to the large liquidation of traders with leverage, which led to the fact that the price cascade was much further than expected.
