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Bitcoin surges 7% to top $20,000, its highest level in more than a week, even as stocks hit 2022 lows – Latest US News Hub

Bitcoin continues to trade in a tight range around the $18,000 to $25,000 mark, giving investors an idea of ​​where the price is headed. The crypto market has been plagued by a number of issues ranging from collapsed projects to bankruptcy.

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Bitcoin topped $20,000 on Tuesday, the highest level in more than a week, but is still struggling to break out of its tight trading range.

The world’s largest cryptocurrency was up more than 7% at $20,265.95 at 3:30AM ET, according to data from CoinDesk.

Bitcoin’s rally has lifted the broader cryptocurrency market. Ether was up nearly 7% at $1,389.75.

Still, bitcoin has struggled for direction, trading between $18,000 and $25,000 since mid-June when a crash saw nearly $2 trillion wiped from the crypto market’s peak in November.

The market decline was driven by interest rate hikes by central banks aimed at taming rising inflation as well as a wave of insolvency and bankruptcy issues that filtered through the crypto industry.

Crypto investors are keeping an eye on monetary policy as digital currencies have been closely correlated with the US stock market this year. Higher interest rates weighed on the S&P 500 and the tech-heavy Nasdaq, which filtered through to other riskier assets, including cryptocurrencies.

The US Federal Reserve’s 0.75 percentage point rate hike last week marked a “major event” for the crypto market, according to Vijay Iyer, vice president of corporate development and international at crypto exchange Luno.

“It was broadly in line with market expectations and therefore, we saw a lot of that sentiment priced in,” Iyer said.

Interestingly, Bitcoin’s rally, which began on Monday, came despite a decline in US stocks as the S&P 500 closed at its 2022 lows. Stock futures rose on Tuesday So, there are signs that the correlation between crypto and stocks is likely to weaken.

Meanwhile, investors are closely watching the US dollar. The dollar index, which tracks the greenback against a basket of currencies, is up more than 18% this year. Bitcoin moves against the dollar, so a strong greenback is negative for Bitcoin. However, Ayer said the dollar index could be nearing a top which would mark a potential bottom for Bitcoin. This could be one of the reasons behind the rise of Bitcoin.

“So traders can position themselves accordingly,” Iyer said.

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Bitcoin surges 7% to top $20,000, its highest level in more than a week, even as stocks hit 2022 lows


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