Bitcoin rose above the $21,000 trading mark in the European hours of Friday as Asian and European markets advanced after today’s open.
Bitcoin has been on a steady fall for over 9 days, after falling from $31,000 at the beginning of June to just a little over $21,000. This development saw the largest cryptocurrency by market capitalization tank 70% from its November 2021 all-time high of $69,000.
At the time of writing, Bitcoin currently trades at $20,571.
BTC/USD 24-hour trading chart (Source: Tradingview.com)
This recovery follows the comments made by the U.S. Federal Reserve’s Chair, Jerome Powell. Powell pointed that the agency was committed to bringing down inflation and increasing interest rates by 75 basis points.
Powell’s comment triggered a relief in the global and crypto markets.
However, analysts feel this rally may just be short-term.
Marcus Sotirion, an analyst at GlobalBlock, said, “This is due to concerns around an earnings recession on the horizon, as a result of the Federal Reserve’s aggressives monetary policy. According to Bank of America, stagflation fears are the highest since 2008, and profit outlooks are the worst since the global financial crisis too. The negative environment could cause an uptick in foreclosures and bankruptcies.”