Bitcoin has bounced back from a 12-day decline after hitting a $17,600 low and is now trading close to the $20,000 mark as it leads a swift turnaround in the cryptocurrency market. The cryptocurrency is up 8.2% in the last 24 hours.
The second-largest cryptocurrency by market capitalization, Ethereum, has also risen over 11% in the past 24 hours – bouncing back from a low near $880. Other altcoins including Solana, Binance coin, and Litecoin have also enjoyed significant gains.
Paul Veradittakit, a partner at crypto-focused hedge fund Pantera Capital, was quoted saying that he believes we “started to hit levels near the bottom where institutional investors see a buying opportunity.”
Analysts have warned the recovery may be brief, as monetary tightening keeps providing macro headwinds and crises within the crypto industry. Katie Stockton, managing partner and founder of Fairlead Strategies, said that consecutive weekly losses below $18,300 would increase the risk of a fall toward $13,900.
Crypto prices have been affected by a mix of bad news cycles and growing interest rates. These factors influenced the space, which was battered by UST’s fall from grace, along with crypto lender Celsius freezing withdrawals, and crypto hedge fund Three Arrows Capital suffering large losses that forced it to consider asset sales or bailout.