Bitcoin It briefly broke above $24,000 on Friday, marking its best monthly performance in nine months as risk assets continued to rise.
The world’s largest digital currency hit $24,412 on Friday, the highest in more than six weeks, according to CoinDesk data. Bitcoin has since clipped some of those gains, dropping just below $24,000 by the end of the session.
Cryptocurrencies surged 4.8% this week, making July its first positive month in four months, rising 26.8%, its highest since October.
The cryptocurrency move has been widely traded in line with recent U.S. stocks, especially trailing the tech-heavy Nasdaq, which has surged over the past two days.
other cryptocurrencies, including ether It soared on Friday.
“Overall, I think the market has responded positively to the Fed’s comments and arguably priced in most of the rate hike,” said Vijay Ayyar, vice president of corporate development and international at crypto exchange Luno. told CNBC in a text message.
“A lot of liquidity appears to be on the sidelines, but is now coming in based on the consolidation/downward pressure of the last few months and is now easing,” he added.
Still, Bitcoin is down about 48% this year, down more than 60% from its all-time high of $68,990.90 set in November.
The crypto market has been plagued by a number of issues including The Collapse of Algorithmic Stablecoin terraUSDset off a chain of events that led to the bankruptcy of lending platform celsius When Hedge Fund Three Arrows Capital.
Market participants are trying to figure out where Bitcoin’s bottom is and whether the industry’s deleveraging and shakeout is over. A market insider told CNBC They hope that macroeconomic conditions will improve and deleveraging will be completed before Bitcoin finds its bottom.
Bitcoin has been trading between about $18,000 and just over $24,000 since mid-June, and Luno’s Ayyar said investors were accumulating bitcoin at those prices.