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Bitcoin is fixed above $ 21,000 and seeks to close in the positive zone the second week of the last 13. And the capitalization of the cryptocurrency market is approaching $ 1 trillion.
Bitcoin above 21,000
Bitcoin continues the gradual upward movement that began on Wednesday, June 22, and holds above $ 21,000. Most altcoins are also recovering from drawdown, the leaders of growth among them are Cardano (ADA) and Dogecoin (DOGE).
Bitcoin was able to recover by 20% after a strong volatile fall last weekend, when its value fell to $ 17,625. The current weekend in comparison with the past is calm.
The dynamics of Bitcoin this week was influenced by the speech of the head of the Fed, who once again stated high inflation and the determination of the regulator to raise rates to combat it. Against the background of these statements, on June 21, Bitcoin lost $ 1,500, but then gradually regained lost ground.
The capitalization of Bitcoin exceeds $ 400 million, and its dominance is 42.4%.
Altcoins follow Bitcoin
Alternative coins went through similar price fluctuations, and were able to recoup last weekend’s losses.
Ethereum fell from $2,000 to $900 and was then able to climb to $1,245.
The BNB returned to the $240 level after declining to the $200 mark.
Similar price fluctuations were experienced by Ripple, Solana, Polkadot, TRON and Avalanche.
The leaders of growth over the past day are Cardano and Dogecoin, which grew by about 3% per day and exceeded 0.5 and 0.07 US dollars, respectively.
The coming week is not significant in any speeches or meetings. There will be a lot of statistics that can affect both the stock and cryptocurrency markets.
There is more and more talk about the inevitability of a recession in the US economy. Together with high inflation, this can lead to stagflation – a situation in the economy when inflation grows at a high rate with declining production and GDP.
The slide of the US economy into recession can lead to even stronger drops in both stock and cryptocurrency markets – at least 50% from current levels. In such a scenario, you can see Bitcoin at around $ 10,000.
The results of trading in US government bonds, in which large “smart” capital traditionally operates, show that these players do not lay in their expectations a strong increase in rates from the Fed, despite the assurances of Fed Chairman Powell in the opposite. This week, Powell did not rule out the possibility of a rate hike of 1% at a time.
Probably, the owners of large capitals are betting that in the conditions of a recession, the Fed will have to, as it has happened more than once in recent years, radically change its policy and begin to reduce the rate to support the economy.
The coming week promises to be as calm as possible in the realities of ever-changing information.
Traders and investors are advised to observe money and risk management and rely on their analysis when making financial and trading decisions.
Author: Elvir, Analyst at Freedman Club Crypto News