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Bitcoin Reclaims $20K, XRP Rises 6%, Here's Potential Reason for Rebound

Tue, 10/04/2022 - 15:14
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Tomiwabold Olajide
Leading crypto asset appears to be gradually gaining bullish momentum
Bitcoin Reclaims $20K, XRP Rises 6%, Here's Potential Reason for Rebound
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Bitcoin regained the $20,000 mark on Oct. 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 veer away from 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 expectations that the Fed and other major central banks would slow tightening amid warnings of driving the global economy into 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 called on to halt interest rate hikes

According to the WSJ, if the Federal Reserve and other central banks continue raising interest rates, the world economy might enter a recession and then experience protracted stagnation, a United Nations 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 are unconvinced that the Fed will abandon or dramatically slow the so-called liquidity tightening anytime soon, and they expect renewed dollar strength. In the meantime, analysts are keeping their eyes on this Friday's non-farm payrolls (NFP) — the U.S. Labor Department's monthly jobs report for September.

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About the author

Tomiwabold is a cryptocurrency analyst and an experienced technical analyst. He pays close attention to cryptocurrency research, conducting comprehensive price analysis and exchanging predictions of estimated market trends. Tomiwabold earned his degree at the University of Lagos.