The cryptocurrency market has seen a strong recovery following the sharp decline experienced yesterday. Bitcoin (BTC) gave investors a breather today by rising above $90,000 after falling to as low as $81,000.
Two main factors are at the forefront of the market’s overall rise: the growing likelihood that the Fed will cut interest rates in December and optimistic expectations for peace in the Russia-Ukraine war.
As the likelihood of a Fed interest rate cut in December increases, international news suggesting a possible easing of geopolitical tensions between Russia and Ukraine has fueled buying in crypto assets. This sentiment has boosted not only Bitcoin but also many major altcoins.
Bitcoin (BTC) is currently trading at $90,220, up 2.85% in the last 24 hours and approximately 1.30% in the last seven days.
Ethereum (ETH) also benefited from the recovery, reaching $3,034, up 2.83% in the last 24 hours. The weekly increase of 5.21% is noteworthy among major altcoins.
The rapid market recovery has hit short positions in the last 24 hours. Total liquidation reached $317 million, with $219 million coming from short positions and $98 million from long positions.
*This is not investment advice.