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Crypto: Bitcoin rallies past $22,000

Yahoo Finance Live’s Jared Blikre breaks down how cryptocurrencies are moving in early morning trading.

Video Transcript

[AUDIO LOGO]

- Got to get to Bitcoin, guys, because Bitcoin was kind of flying over the weekend. It has been flirting with the $20,000 lows, extending all the way down to $18,000, $19,000. But let's take a look at the WiFi Interactive here. And I think crypto has been in the news for a number of reasons.

Now, first, we have the price. And then we have that big Ethereum merger. And here's what Bitcoin has done over the last five days. You can see, we got some lift off on Friday, some good news there. And then up, up and away. Up 15.5%, and let's check in on Ethereum. That is down 1.5% over the trailing 48 hours. But we are looking at gains of 7% over the last five days.

And let me just show you something here. I have a chart that I posted over the weekend. I tweeted this and it has to do with the volume that we're seeing in Bitcoin right now. And a couple of charts that we have available through our platform, all for free, this is volume at price.

So here, we have going back a few months here. Here's the price. This is the big $20,000 level. You can see this purple histogram here. That's where a lot of volume is. Price has memory. And traders are remembering, all right, I got in that $30,000 here. If it gets back to $30,000, are they going to get out? These are natural entry and exit points. You can see the same for $40,000.

I guess my big point is here we got some obstacles ahead, but given this huge base that we saw over the last few months in Bitcoin and some of these other coins, it looks like we may have the ability to find a lift off. But we've said this many times over the last year and a half, guys.

- I mean, this is going to be a September to remember, especially within Ethereum because this really moves the overall kind of protocol over to the staking model. And for those who don't know, staking is basically when you're storing or purchasing and then storing cryptocurrency. This is something that's been baked in to Coinbase's model. They've talked about this in their most recent earnings reports as this is not only kind of-- there's a price driver when it comes to staking. And that price is an impact that they've talked about before.

But then the staking rewards rates, and it doesn't seem like there's going to be a massive change in some of those rewards rates once the merger takes place. However, this does put staking more in the limelight, more in kind of the ability for so many people who are looking to either purchase and then stake to do so with the Ethereum network at a larger, more massive scale. It'll also decrease some of the overall supply as well out there. That's why we might see the price actually move higher too.

- Because Ethereum is used and Ether is used as the backbone of a lot of different commercial applications, there is a little bit of trepidation around the merge, right? Because it's a pretty complex operation to make this whole transition on stuff that's actually being used in practice.

I saw one analogy that it was like trying to fix an airplane in mid-flight. And it is something that doesn't just happen on one day. Like, you have some of the forking that has happened in some of the various cryptocurrencies as well. And so, this is something that could be done towards the end of the week, but I have a feeling we're going to be watching the price of Ethereum and sort of news coming out about this over the course of the week as we track it.

- Yeah. A quick comment here. You take a look at Ethereum Classic, now this is the old proof of work model there. You've seen hash rates increase and some of the traders I've been looking to or have been talking to, like Ethereum Classic, just based on the fact that it's the sole remaining big gorilla in the room if you want that old model. So just kind of throwing that out there, guys.

- Going to be keeping a close eye on BTC USD, as well as ETH USD as well.