Bitcoin reaches a 6-week high, completing $24,000 in a post-Fed rally

Bitcoin reaches a 6 week high completing 000 in a post Fed rally

Aug 2022, 2022: -On Friday, Bitcoin hovered at nearly $24,000, which hits a 6-week high as it continues to follow stock markets higher.

The biggest digital currency in the world reached $24,412 on 2:30 a.m. ET on Friday, according to CoinDesk data, its high level in more than six weeks. Bitcoin has since pared a few of those gains and sat just above $24,000 at 6:32 a.m. ET.

Bitcoin’s rally started after the Federal Reserve walked interest rates on Wednesday but signaled that the speed of such growth could slow. This sparked a recovery in U.S. equities.

Moves in cryptocurrencies are trading broadly in line with U.S. stocks of late, particularly tracking the tech-heavy Nasdaq, which has increased sharply in the previous two days.

Different cryptocurrencies, which include ether, were increased on Friday.

“Overall, I think markets have answered positively to the comments and arguably have priced in more of the rate hikes,” Vijay Ayyar, vice president of corporate growth and international at crypto exchange Luno, told CNBC through text message.

“There would be a lot of liquidity sits on the sidelines, which is now coming in based on the previous few months of consolidation/downward pressure, that is easing up,” he further said.

Still, bitcoin is down 48% this year and stays more than 60% off from its all-time high price of $68,990.90 in November.

The crypto market has been plagued by several issues, including the collapse of algorithmic stablecoin terraced, which sparked a chain of events leading to the bankruptcy of lending platform Celsius and hedge fund Three Arrows Capital.

The market is trying to figure out where the bottom is for bitcoin and whether the deleveraging and shakeout in the industry are over. Market players said they want to see an improving macroeconomic picture and the completion of deleveraging before the bottom for bitcoin is found.

Bitcoin has been trading from around $18,000 to just more than $24,000 since mid-June, and Luno’s Ayyar says that investors had been accumulating bitcoin at those prices.

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Bitcoin reaches a 6-week high, completing $24,000 in a post-Fed rally
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Bitcoin reaches a 6-week high, completing $24,000 in a post-Fed rally
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On Friday, Bitcoin hovered at nearly $24,000, which hits a 6-week high as it continues to follow stock markets higher.
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