The cryptocurrency market has shown signs of recovery, with Bitcoin trading at $26,647.86 as of Friday, marking a 1.33% gain in the last 24 hours and its highest price for the week. Ethereum also exhibited gains, increasing by 0.83% and currently trading at $1,630.10, according to data from Coinmarketcap.com.
The global crypto market capitalization has risen by 1.2% in the last 24 hours to approximately $1.1 trillion. However, the crypto fear and greed index continues to remain in the fear zone with a score of 45/100, indicating a level of caution among investors.
Several industry experts have commented on this recovery. Parth Chaturvedi, Investments Lead at CoinSwitch Ventures, pointed to Deutsche Bank’s announcement that it would provide digital asset custody and tokenization services as a potential factor boosting the crypto market. He also mentioned possible signals from the European Central Bank to end rate hikes in the euro area as another supportive development.
Rajagopal Menon, VP at WazirX, acknowledged the crypto market’s resilience and noted that moving averages indicate a ‘Buy’ sentiment. However, he expressed concerns over the ongoing liquidity crunch due to HODLers retaining their assets and trading volumes not showing significant improvement yet.
Sudeep Saxena, Co-Founder of CoinGabbar, highlighted the impact of US inflation consumer data on Bitcoin price movement. “Bitcoin is facing resistance around the $26,500 mark while US consumer inflation surged to 0.6%, surpassing the anticipated 0.4%, pushing the inflation rate to 3.6%,” said Saxena to Republic TV. He added that elevated inflation could negatively impact Bitcoin, potentially prompting the Federal Reserve to consider raising interest rates.
Shivam Thakral, CEO of BuyUcoin, noted that Europe is a more mature market for digital assets and may see increased user activity as the liquidity gets a boost. However, he also warned that the highest oil prices of 2023 could negatively impact the financial markets.
In other crypto news, Polygon has published three new proposals to upgrade its native token from MATIC to POL and launch its staking layer. As a result, Polygon gained 1.82% in the last 24 hours and currently trades at $0.525. Bitcoin Cash and XRP also recorded significant gains in the last 24 hours, increasing by more than 8.7% and around 3.77% respectively.
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