Bitcoin Rockets Past $67K During Crypto Surge; Solana’s SOL Shines Bright | Crypto Currency News

Friday saw a remarkable rally in the crypto market, breaking away from the recent trend of following U.S. equities, which continued their losing streak. Bitcoin reached a one-month high, surging 5.5% in the past 24 hours. Solana also made significant gains, rising 8% and surpassing $170 for the first time since early June.

Resilience of Decentralized Blockchains

Crypto observers have pointed out the robustness of decentralized blockchains, especially in light of recent IT disruptions caused by a malfunctioning software update. As IT systems worldwide faced disruptions, the crypto rally continued unabated.

Bitcoin’s Performance

Bitcoin (BTC) started its upward climb from $64,000 during early U.S. trading hours, breaking above $67,000 later in the day, a level not seen since June 17. This price surge was supported by strong trading volumes for BlackRock’s spot bitcoin ETF (IBIT). At press time, Bitcoin was trading slightly above $67,000, marking a 5.5% increase in the past 24 hours.

Altcoins on the Rise

Solana (SOL) led the altcoin majors with an 8.5% increase, topping $170 for the first time since early June. The token outperformed the broader digital asset benchmark, the CoinDesk 20 Index (CD20), which rose 4.3%. Ethereum’s ether (ETH) reclaimed the $3,500 level, although it underperformed with a 3% increase. The first spot-based ETH exchange-traded funds (ETF) in the U.S. are expected to start trading on Tuesday next week, according to Friday’s regulatory filings by Cboe.

Divergence from U.S. Equities

While cryptocurrencies rallied, major equity indexes in the U.S. continued their downward trend. The tech-heavy Nasdaq Composite was down 0.8%, and the broad-based S&P 500 lost 0.6% as of 1 p.m. ET. Gold also plummeted over 2% during the day, following a fresh all-time high earlier in the week.

Decentralized Systems vs. Centralized Networks

As a software update by cybersecurity service provider CrowdStrike caused widespread computer outages, halting airlines, banks, and businesses, some crypto observers emphasized the resilience of decentralized systems like public blockchains compared to centralized networks. Charles Edwards, founder of crypto hedge fund Capriole Investments, noted Bitcoin’s rapid surge coinciding with the U.S. traditional market opening, possibly indicating bidding from institutional investors.

Market Outlook and Predictions 

Bitcoin is trading around the midpoint of a multi-month sideways channel between $56,000 and $73,000. Spot prices may remain range-bound in the near term, but traders are increasingly positioning for a breakout to new all-time highs towards the U.S. elections in November, according to digital asset hedge fund QCP. QCP analysts noted strong demand for December $100,000 Bitcoin call options from institutions.

Mads Eberhardt, a crypto analyst at Steno Research, expressed a bullish view for the second half of the year for crypto assets. He cited multiple tailwinds, including expected U.S. interest rate cuts, rising liquidity, regulatory clarity in Europe, and the possibility of more crypto-friendly U.S. leadership. His price targets are $100,000 for Bitcoin and $6,500 for Ethereum.

What is Cryptocurrency and How Does It Work?

Cryptocurrency is a digital or virtual form of currency that uses cryptography for security. Unlike traditional currencies issued by governments (like the dollar or euro), cryptocurrencies are decentralized and typically operate on technology called blockchain.

A blockchain is a distributed ledger that records all transactions across a network of computers. This ensures transparency and security, as every transaction is visible to all participants and cannot be altered retroactively.

How Does Cryptocurrency Work?

1. Decentralization: Cryptocurrencies operate on decentralized networks based on blockchain technology. This means they are not controlled by any single entity, such as a central bank.

2. Mining and Transactions: New units of cryptocurrency are created through a process called mining, which involves solving complex mathematical problems. Transactions are verified by network nodes through cryptography and recorded on the blockchain.

3. Wallets and Exchanges: Users store their cryptocurrencies in digital wallets, which can be hardware-based or software-based. Cryptocurrencies can be bought, sold, and traded on various exchanges.

4. Security: Cryptography ensures the security of transactions and the integrity of the blockchain. Public and private keys are used to authenticate and encrypt transactions.

Cryptocurrencies have gained popularity due to their potential for high returns, the promise of decentralization, and the transparency provided by blockchain technology. However, they also come with risks, including volatility, regulatory uncertainties, and security threats.