Bitcoin ends last week's trading just below $24,000 after breaking that level for a while on Friday, and Ethereum was above $1,700
Bitcoin ends July with 20% gain, but caution still reigns
Bitcoin ends last week at just under $24,000 after breaking that level for a while on Friday, Ethereum was above $1,700, and both cryptocurrencies posted their best monthly performance since 2021, but the price action remains confusing.
Speculation in the leading cryptocurrency appears to be back with the crypto market rallying, despite growing fears of an impending economic recession and the Federal Reserve's rate hike at its meeting last week.
Binance CZ CEO and MicroStrategy CEO Michael Saylor and Galaxy Investment CEO Mike Novogratz are bullish on the crypto market ahead of the Federal Open Market Committee meeting, arguing that rising recession fears will inevitably lead to Bitcoin adoption.
Bitcoin affected by rising inflation
Over the course of July, the most popular cryptocurrency gained about 29%, recording a high of $24294, after two months of decline.
The Fed's decision to raise interest rates and negative GDP report failed to drag the market recovery as positive sentiment rose, Crypto Fear and Greed jumped from 11 points last month to currently at 42 points, making Bitcoin attractive above The $20,000 level.
The CEO of Binance “CZ” eased concerns about rising inflation and recession, and sees that Bitcoin will take a downward path above $ 20,000, because the recent peak near $ 20,000 recorded in 2017 acts as a strong psychological barrier, adding that the fundamentals of the leading digital currency Very strong, with the correlation between the money supply and the Nasdaq 100 as secondary factors, the improved regulatory environment and elevated inflation and recession talks will help push the price of Bitcoin higher.
This logically asserts that the cryptocurrency market needs to be the opposite of financial markets, but due to the smaller market size cryptocurrencies today are associated with macro factors, cryptocurrencies and stock markets are on the rise despite interest rate hikes and growing fears of an economic recession.
The size of the cryptocurrency market is so small that every time the stock market crashes, people want to hold the cash, now most of the people who trade in the cryptocurrency market are also trading stocks, so now they are correlating positively, which is not appropriate.
Purchase orders rise again
After unexpectedly rebounding in the second half of the month, Bitcoin soared tracking the movement of global stock markets, the coin is expected to maintain highs above $20,000 for an extended period of time, pulling off a new macro low.
With sentiment moving out of the "fear" zone, market watchers note that sentiment is likely to continue to make the bear market in 2022 very difficult, due to unprecedented macroeconomic conditions, which have manifested in the US inflation rising to its highest level in 40 years. The Federal Reserve raised interest rates sharply, which increased the chances of the US economy entering a recession.
A professional technical and economic analyst in global financial markets since 2004. He holds a Master’s in Business Administration from the American University in Cairo. He works as an economic writer and technical analyst for many international financial companies. He writes daily economic and technical analyzes for many Arabic and English websites specialized in the field of stock exchanges and financial markets.
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