Bitcoin (BTC) price has risen about 40 per cent in price this year amid surging investor confidence that inflation is waning without throwing the U.S. economy into recession
Bitcoin dropped for a fifth day in a row on Monday before regaining ground later in the day to trade near $23,000.
The crypto currency was recently down nearly half a percentage point during the past 24 hours, as per data from CoinDesk.
Bitcoin has had a few rough sessions but broadly speaking it still appears in good shape, sitting within the range it is traded in over the last couple of weeks and not far from the new year highs, Craig Erlam, senior market analyst at forex services firm Oanda, wrote in a Monday note.
The largest crypto currency by market capitalization has moved up nearly 40 per cent in 2022 amid soaring investor confidence that inflation is fading without throwing the U.S. economy into recession. An unexpectedly strong employment report on Friday raised fresh worries on both counts and sent crypto assets below $23,000 over the weekend after it breached $24,000 on a couple of occasions last week.
Meanwhile, ether (ETH), the second-largest crypto in market value, rose 1.3 per cent to recently trade at $1,640. The CoinDesk Market Index, which measures crypto market performance, was up 1 per cent for the day.
The Fed increased interest rates by a quarter point in the previous week following eight months of more hawkish half- and three-quarter-point hikes.
Job numbers gave credence or credibility to the fact that the Fed could not leave rates higher for longer and the markets have slowly started to respond to that, Ben McMillan, CIO of IDX Digital Assets, told CoinDesk.
Bitcoin’s current $20,000 level is a firm technical support, McMillan said, although McMillan said he would not be surprised to see bitcon retest this critical level.
Crypto volatility is gonna continue this year, even if the uptrend is structurally bullish, McMillan said. I think the key thing for investors now to keep an eye on is understanding bitcoin volatility and how to price it and size it in their portfolios.
