Bitcoin Recovers After a Volatile Week From 16-month Low

Bitcoin, the world’s largest cryptocurrency, has rebounded from a 16-month low after a volatile week that wiped $200 billion off the market value of the cryptocurrency.

Bitcoin last rose 4.85% to $29,925, recovering from $25,000, the lowest level the digital currency has reached since December 2020, and although it climbed to nearly $31,000 on Friday, it remains well below the previous week’s level of around $40,000.

Ether, the second largest cryptocurrency in terms of market capitalization, also gained, climbing 6.48% to $2,051. Tether was back at $1 after falling to 95 cents on Thursday. However, TerraUSD, another stablecoin is down at 14 cents.

Overall, crypto’s market capitalization rose 6.6 percent on Friday to $1.35 trillion.

Experts say high inflation and fear of high interest rates have led investors to sell risky assets, which they believe is causing cryptocurrency to plummet in value.

While crypto may be on the rise, experts fear the worst is yet to come, with Stifel chief equity strategist Barry Bannister saying bitcoin has another downside to about $15,000.

“Bitcoin is also GDP-sensitive, because bitcoin falls when the PMI Manufacturing index drops, as we expect (into the third quarter of 2022), indicating that a last, capitulatory bitcoin drop may be still ahead,” Bannister said.

IT World Canada Staff
IT World Canada Staff
The online resource for Canadian Information Technology professionals.

Would you recommend this article?


Thanks for taking the time to let us know what you think of this article!
We'd love to hear your opinion about this or any other story you read in our publication.

Jim Love, Chief Content Officer, IT World Canada

Featured Download

ITW in your inbox

Our experienced team of journalists and bloggers bring you engaging in-depth interviews, videos and content targeted to IT professionals and line-of-business executives.

More Best of The Web