XRP jumped 16% in the past 24 hours as bitcoin surged above the $21,000 level and the biggest cryptocurrencies showed signs of recovering from a steep fall last week.
Solana’s SOL tokens jumped 8% after the development team announced the Solana crypto-native mobile phone at an event in New York yesterday. Avalanche’s AVAX rose 8%, extending Thursday’s gain as the project introduced a native bridge to the Bitcoin network. Polygon’s MATIC added to Thursday’s run with a 17% increase.
Bitcoin (BTC) broke above the $21,000 level in the afternoon in Europe, adding to a steady rally since last weekend’s plunge to near $18,000. The current levels acted as a resistance zone for the largest cryptocurrency by market cap, and a rally above could see the asset climb to $22,600.
Bitcoin bounced back, but is facing a key resistance level. (TradingView)
Bitcoin has come under selling pressure over the past week amid systemic cryptocurrency market risks, such as cryptocurrency lenders suspending withdrawals and the explosion of major cryptocurrency fund Three Arrows Capital – which is due to its creditors hundreds of millions of dollars in bitcoin and other cryptocurrencies.
Friday’s rally came as stock and bond markets rallied. Equities in Asia gained, with Hong Kong’s Hang Seng up 2.09%, and India’s Shanghai Composite and Sensex ending the day up 0.89%. The Stoxx Europe 600 gained 1.49% by midday, while US futures gained at least 0.50%.
On Thursday, US Federal Reserve Chairman Jerome Powell said the agency’s commitment to containing inflation, which has been high for 40 years, was “unconditional”, adding that he expected the economic growth picks up in the second half after a slow start to 2022. according to Reuters.
While Powell’s comments indicate that higher interest rates could be in sight, Jeffrey Halley, senior market analyst at OANDA, told clients in a note that markets continue to price in “a recession stopping rate hikes much sooner.”
Global banks Goldman Sachs and Morgan Stanley reiterated their warnings earlier this week, saying recession risks were “not fully priced in” by investors. Citi pegged the possibility of a recession at 50%.
“This week’s moves could yet turn out to be the result of a financial market genetically pre-programmed to buy declines in stock and bond prices, thanks to two decades of central bank largesse,” Halley said. “This could also be a bear market correction, as the rush for the exit door was exaggerated in the short term, resulting in a short squeeze. »
Powell’s comments came as investors remain spooked by concerns over inflation and supply chain strains. Last week, the Fed raised rates by 75 basis points, the most in 28 years, in an effort to rein in inflation. Another hike of 50 to 75 basis points is expected in July.
Meanwhile, crypto traders remain cautious about the current market reversal. “It will be too early to talk about a long-term reversal,” FxPro’s Alex Kuptsikevich told CoinDesk earlier this week. “All the negative fundamentals remain. Until a sharp tightening of monetary policy becomes the norm, financial market pressures can quickly undo cryptocurrency rallies. »
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XRP Leads Recovery Of Cryptocurrency Majors, Bitcoin Rises Over $21,000 As Rate Hike Concerns Ease | Cryptocurrency
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