Bitcoin was showing signs of recovery after being marooned below the key $30,000 level for the past week. Other major cryptocurrencies followed suit.
The market’s largest cryptocurrency climbed as much as 4.4% to $30,441.43 at one point. Bitcoin has been sluggish in recent months as the US Federal Reserve and other central banks have pivoted toward aggressive interest rate hikes in the face of stubbornly high inflation.
Some market watchers have been concerned that Bitcoin has been too closely correlated to the performance of the Nasdaq 100, meaning investors are treating it like a risk asset.
Many commentators have been quick to sound the death knell of cryptocurrencies after Bitcoin plummeted from last year’s all-time high of $69,000 to a level below $30,000. However, this latest increase past the symbolic $30,000 threshold indicates the early beginnings of recovery. The most hawkish commentators still claim that while inflation is at its current highs, and with an economic downturn now a strong likelihood, Bitcoin and other cryptocurrencies are not out of the woods just yet.
What does this mean for me?
For the crypto trader, this latest news is positive. If you have been swing-trading cryptos, you will have been holding on to your portfolio despite the dramatic loss of value over the last few months. Suffice it to say, this latest price increase could be the break every crypto swing trader was awaiting, giving cautious proof that the price of cryptos is slowly on the rise again.
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