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Bitcoin Rises 7% to $20,000 per Coin

Bitcoin surpassed $20,000 on Tuesday, reaching its highest level in more than a week, but it cannot break out of its trading range.

The world’s largest cryptocurrency increased by more than 7% to $20,264.95.

The rise of Bitcoin has boosted the broader cryptocurrency market. Ether was trading at $1,389.74, up around 7%.

Still, bitcoin has been stuck in a rut, trading between $18,000 and $25,000 since mid-June following a crash that saw roughly $2T wiped out of the whole crypto market since its peak in November.

That market fall was due to central bank interest rate hikes aimed at taming excessive inflation and a wave of bankruptcies and bankruptcy troubles that swept through the crypto business. Because digital currencies have been closely associated with US stock markets this year, crypto investors have been watching monetary policy. Higher interest rates have weighed on the S&P 500 and the tech-heavy Nasdaq, filtering through other riskier assets such as cryptocurrency. Investors are keeping careful about the US dollar.

The dollar index (DXY) measures the value of the US dollar against a basket of currencies. It has risen more than 18% this year. Because bitcoin moves inversely to the dollar, a strong greenback is detrimental to bitcoin. However, the dollar index may be nearing its peak, signaling a possible bottom for bitcoin.

Crypto Market

Ethereum gained nearly as much – 7% – to $1,385. In this context, total crypto market capitalization increased by 5.5% to $970B. Leading altcoins added between 2.3% (XRP) and 8.1%. (Solana).

While the Dow Jones index closed at its lowest level since November 2020, the Nasdaq100 recovered from its June lows, and cryptocurrencies surged. The outperformance of the riskiest assets is more common during periods of significant monetary stimulus. Apple has approved the sale of collectible tokens (NFTs) in apps on its devices, but the fee will be 30%, infuriating the crypto community.



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