The two largest digital currencies in the world bitcoin and Ethereum, It is heading towards its best month since 2021, driven by the resurgence of risk appetite in global markets and optimism about updating the Ethereum network.
Bitcoin price is trading at $ 23,800 at the time of writing, while Ethereum is at $ 1,700.
The FED’s Recent Statements Caused a Rise in the Cryptocurrency Market
Increasing signs of a slowdown in the US economy are leading some investors to the view that the Fed will complete its rate hike by the end of the year and may even turn to lower borrowing costs in 2023.
This will provide a more fertile ground for speculative assets like crypto, which has taken a big hit this year.
Adrian Kenny, senior sales trader at GlobalBlock, wrote in a note:
“A very pleasant uptrend continued throughout the week. cryptocurrencies and the markets in general have had a relief rally over the past few days.”
Cryptocurrencies are trying to recover from a crash this year that caused the MVIS CryptoCompare Digital Assets 100 index to drop more than 50%.
Earlier this year, cryptoassets were rocked by the Fed’s move to monetary tightening and the subsequent collapses of leveraged companies like crypto hedge fund Three Arrows Capital.
“Bitcoin May Have Found Market Bottom”
Cici Lu, CEO of consulting firm Venn Link Partners, said:
“Signs that the Fed may be nearing the end of its rate hike cycle have raised all risk assets, and crypto has benefited as well. It looks like the liquidation of leveraged positions is over, markets may have bottomed out.”
Meanwhile, the Ethereum Blockchain is expected to migrate to the more energy-efficient Proof-of-Stake system.
This has been a recent push for Ethereum. According to Mark Newton, Fundstrat’s technical strategy manager, ETH could rise to $1,915 to $2,000 in the coming days:
BitBull Capital CEO Joe DiPasquale said he will watch where Bitcoin closes the month and whether it will retest key supports around $19,000 to $20,000.
“Successful bounces in this range can provide the bulls with a solid foundation for a continued rally.”
*Not investment advice.