Bitcoin Extends Rally After Biggest Gain in Year
After surging 14% on Monday, Bitcoin was up again on Tuesday morning. As at the time of writing, bitcoins were being exchanged at $43,922 each.
Monday’s performance of Bitcoin was back at the point it had reached before Russia planned its invasion of Ukraine.
The risks from a prolonged conflict led many crypto investors to worry that the new cloud over the economy could sap demand for BTC. But market sentiment quickly changed, and some traders now think that the Fed might soften their stance.
Jerome Powell, the newly appointed head of the Federal Reserve, will testify before Congress on Wednesday.
“We believe that Fed tightening won’t be severe at the start, and with yields tumbling hard, this should be an attractive time for cryptos,” said Edward Moya, analyst at Oanda.
Marcus Sotiriou, a GlobalBlock analyst, claims that cryptocurrencies will start to rise again because the Federal Reserve isn’t tightening its monetary policy as aggressively.
Bitcoin is down 8% this year, it’s been matching gold’s performance. Gold has been more effective in terms of return so far in 2022; it has increased by 6%.