Leading crypto asset appears to be gradually gaining bullish momentum
Bitcoin hit the $20,000 mark on October 4th, trading well above psychological levels at press time. The major crypto asset is slowly gaining momentum following hopes that the Federal Reserve will do away with severe liquidity withdrawal measures.
The biggest cryptocurrency in terms of market capitalization, Bitcoin, reached a high of $20,262 and was trading at $20,082 at the time of publication, up 4.69% in the last 24 hours. XRP was a top gainer among the top 10 largest cryptocurrencies by market capitalization, up 6.63% to trade at $0.479 at press time.
Buyers stepped in following hopes that the Fed and other major central banks would slow the tightening amid warnings that the global economy was headed for a recession.
Based on historical precedents, Will Clemente, a crypto analyst, previously emphasized a favorable Q4 for Bitcoin. The current increase in Bitcoin also coincides with a gain in the S&P 500.
Fed calls for stopping interest rate hikes
according to WSJIf the Federal Reserve and other central banks continue to raise interest rates, the world economy could enter a recession and then experience a prolonged stagnation, a UN agency warned on Monday.
The warning is being issued amid growing unease over how quickly the Fed and its counterparts are raising borrowing costs to rein in spiraling inflation. The United Nations Conference on Trade and Development warned the Fed against continuing with its current course of swift rate increases in its annual report on the state of the world economy.
However, some observers do not agree that the Fed will soon give up or dramatically slow down so-called liquidity, and they expect renewed dollar strength. Meanwhile, analysts are eyeing this Friday’s non-farm payrolls (NFP) — the US Labor Department’s monthly jobs report for September.
