The situation in the cryptocurrency market today is as follows.

As you can see, many of the top coins by market capitalisation gave out a rise on the scale of the week. In first place with 8.9 per cent is XRP from Ripple, which continues to sue the US Securities and Exchange Commission.

In second place with 5.1 per cent is Solana. So what has been the reason for the positivity in the digital asset market?

Will there be a default in the US?

After lengthy negotiations between Republicans and Democrats, President Joe Biden’s administration has shaped and presented to Congress a solution to the US debt ceiling problem. It is not yet known if it will pass the congressional vote but many experts remain optimistic on the issue. In addition, Biden himself has already said that the worst-case scenario of a default is unacceptable for officials.

The news was positively received by the price of Bitcoin, which for a while managed to overcome resistance around $28,000. By today, the cryptocurrency had corrected on its chart. However, a popular crypto trader under the nickname Rekt Capital said that the picture on the scale of BTC’s 1-week chart looks promising. Here’s his rejoinder, in which the trader shares his view of what’s happening in the digital asset market.

This is a good candle close on the 1-week chart. A fortnight ago Bitcoin lost support around $27,600. The asset is now looking to regain or at least test that level.

On the chart above, Rekt Capital has drawn a black horizontal line – this is the $27,600 level he mentioned. The analyst believes that a dip to this line is quite acceptable as part of the cryptocurrency’s continued growth. Moreover, at the moment, the expert’s forecast is still valid.

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Another trader under the nickname CrediBULL Crypto believes that the local growth of BTC price is caused by forced closing of bears’ positions. The following chart speaks in favor of this version.

You can see that with each jump in BTC the amount of open positions is decreasing – the bears are closing short positions with a loss. CrediBULL Crypto noted that this trend will continue until the bears run out of steam altogether and the market has a path to a new bull run.

New record for mining difficulty

Tomorrow night there will be another recalculation of Bitcoin mining complexity. The figure is expected to rise by 3.5 percent to 51 trillion, which will be another all-time high for the index. The situation is being facilitated by a steady increase in the hash rate of the BTC network.

The increase in the hash rate was also noted by Glassnode analysts. According to their data, the figure has increased by 3 percent in the last few days. With that in mind, the increase in BTC mining complexity is indeed coming soon.

According to Cointelegraph sources, Bitcoin miners have also returned to coin hoarding. Their balance is growing steadily and slowly.

Bitcoin’s current trend is often compared to the cryptocurrency’s rise in 2019. However, the two growth phases have their differences. Will Clemente, head of research firm Reflexivity Research, pointed them out on his Twitter. Here’s a relevant quote from the expert.

One of the biggest differences between this Bitcoin trend and the previous one is that in 2019 the hashrate didn’t hit new highs until BTC had tripled from its lows. Now, however, the hashrate has more than doubled from its previous high in May 2021, and BTC is up just 75 per cent from its lows.

In other words, the change in Bitcoin's network hashrate now does not correlate as much with its value. It can be assumed that more productive ASIC miners along with the use of more affordable electricity are contributing to this. As a result, miners can afford to step up their equipment even while the BTC exchange rate is far from its heights.

Some analysts see the hash rate as a long-term indicator for the Bitcoin price. This means that the value of BTC should soon repeat the corresponding pattern on the hashrate chart.

Crypto investors are not selling coins

The number of bitcoins lost along with bitcoins in the wallets of long-term investors has also reached another all-time high. That is, fewer and fewer BTCs are available for purchase right now.

Another record is the number of cryptocurrency wallets with balances greater than zero. This metric has crossed the 47 million unit mark. It traditionally signifies an influx of newcomers who have not previously interacted with digital assets and are now buying them only in small volumes.

Overall, in terms of fundamentals, Bitcoin’s future looks cloudless. The approaching halving, i.e. halving the rate of new BTC issuance, also adds positivity. Yes, this event does not affect the overall cryptocurrency supply as much now, but it is traditionally considered positive because bullruns in the coin market usually start just shortly after a halving.


Conditions in global markets - and cryptocurrency markets included - do not seem to be the worst right now. And while economies of various fears are still facing high inflation, the possibility of avoiding a default on US government debt is pleasing in any case. Therefore in such a situation the appetite for risk amongst capital holders might really increase.


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