That the bitcoin price has recovered a little is explained by some analysts because the dollar has weakened this week.
Bitcoin price has had a weak week, almost falling to the previous low of the year. On Friday morning, however, the course made a leap of joy.
From hovering around $19,395, the price of the world’s largest cryptocurrency began to soar at 5:30 a.m.
It crossed the $20,000 mark and reached as high as $20,796 three hours later, according to figures from Bitstamp.
This corresponds to an increase of 7.2 percent.
Crypto market again over 1,000 billion dollars
The price of the world’s second largest cryptocurrency ethereum also rose during Friday morning – from 1,642 to 1,717 dollars. This corresponds to an increase of 4.5 percent.
The other day, the total value of all cryptocurrencies fell below $1 trillion, but this latest price rally has pushed the value back above that mark, according to figures from Coinmarketcap – albeit by a fairly small margin.
May be due to weakened dollar
That the bitcoin price has recovered a little is explained by some analysts because the dollar has weakened this week.
Earlier this week, the dollar hit a 20-year high, but lower interest rates on government bonds and a larger-than-expected rate hike from the European Central Bank caused the dollar to lose power, Investing.com writes.
During a press conference yesterday, ECB President Christine Lagarde also said that more major interest rate hikes, between two and four, will take place because the bank is still far from its goals.
“The ECB will therefore continue to raise interest rates at a rapid pace and we expect two more 50-point increases in October and December, which will raise the deposit rate to 1.75 percent towards the end of the year,” writes SEB in a morning letter.
The Fed also intends to continue raising
Even the head of the Federal Reserve, Jerome Powell, emphasized yesterday that the central bank must continue with interest rate increases until inflation has fallen back significantly.
“The message is in line with speeches from earlier this week when the Fed’s Brainard expressed that the central bank needs several months of low monthly inflation figures to be sure that inflation is moving down towards the target,”