Bitcoin Takes Back $20,000, XRP Rises 6%, Here’s A Potential Reason For Rebound
Bitcoin regained the $20,000 mark on October 4, trading above the psychological level at press time. The leading crypto-asset appears to be gradually gaining bullish momentum following hopes that the Federal Reserve would back away from severe liquidity withdrawal measures.
Here we go pic.twitter.com/vXC4ZEFzxz
— Will Clemente (@WClementeIII) 3 October 2022
The largest cryptocurrency by market cap, Bitcoin, hit a high of $20,262 and was trading at $20,082 at press time, up 4.69% in the last 24 hours. XRP was a top gainer among the 10 largest cryptocurrencies by market capitalization, up 6.63% to trade at $0.479 at press time.
Buyers entered on expectations that the Fed and other major central banks would slow tightening amid warnings of pushing the global economy into recession.
S&P bounces off 200-week moving average and regains June low👀 pic.twitter.com/TSSfJcqzFO
— Will Clemente (@WClementeIII) 4 October 2022
Based on historical precedents, Will Clemente, a cryptoanalyst, previously emphasized a favorable fourth quarter for Bitcoin. The current rise in Bitcoin also coincides with a gain in the S&P 500.
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The Fed called for a halt to interest rate hikes
The Fed and other central banks risk pushing the global economy into recession followed by prolonged stagnation, a UN agency warns, amid growing unease over rapidly rising borrowing costs
— The Wall Street Journal (@WSJ) 3 October 2022
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 prolonged stagnation, a United Nations agency warned on Monday.
The warning comes amid growing unease over how quickly the Fed and its counterparties are raising borrowing costs to curb inflation. The United Nations Conference on Trade and Development warned the Fed against continuing on its current course of rapid rate hikes in its annual report on the state of the world economy.
However, some observers are not convinced that the Fed will abandon or dramatically slow the so-called liquidity tightening anytime soon, and they expect renewed dollar strength. Meanwhile, analysts are keeping an eye on Friday’s non-farm payrolls (NFP) – the US Labor Department’s monthly jobs report for September.
