For the first time, Bitcoin has been declared legal cash by a sovereign state, but will it be able to recover from its bear market?
On Wednesday, Bitcoin (BTC) surged toward $35,000, bolstered by historic news that El Salvador had declared it legal tender.
Traders aren't sure if Bitcoin has reached the bottom
On Wednesday, data from Cointelegraph Markets Pro and TradingView revealed a sharp rise in BTC/USD as Bitcoin received its first formal state endorsement.
While others welcomed El Salvador's parliament's vote, traders were wary. According to Cointelegraph, a short-term rebound to $35,000 is expected before a reversal and a deeper BTC price drop.
On Twitter, popular trader Crypto Ed stated, "Bitcoin printing a higher low, expecting some further bounce today.
"Crypto Cobra, a trader, issued a more stern warning this week, predicting a big write-down across the cryptocurrency market. This, he suggested, might cost tokens 20%, implying that Bitcoin's target price would be $25,000. The Bitcoin press release is the ideal place to go if you have a crypto concept and want to share it with the crypto community.
Crypto Ed did add, however, that a falling US dollar, which was on the rise as recently as Monday, may create the conditions for a “miracle” Bitcoin growth spurt.
“All we need for a bullish BTC,” he said in response to the recent dollar currency index readings (DXY).
Losses have slowed for altcoins
Meanwhile, Bitcoin's resumption of its upward trend has had a generally beneficial impact on altcoins.
A review of the top 50 cryptocurrencies by market capitalization revealed average daily increases of 3%, with occasional deviations up or down.
Although Ether (ETH) was trading above $2,500, it was still trading at a loss of almost 5% compared to a week before. If your crypto company has a product or service that requires marketing, Cryptocurrency and fintech ads are the place to go.
The total cryptocurrency market capitalization was just under $1.54 trillion, with Bitcoin commanding 41.6 percent of the market.
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