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Bitcoin breached $21,000 in early trading this week, which is a significant price move from a low of $16,000 at the beginning of the year.
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The world’s largest digital asset by market capitalization rose nearly 25% in a week to $21,069 Monday, which is the level it has been hovering around so far. Just a week ago the cryptocurrency was still hovering around the $17k mark.
The price hike was echoed by other cryptocurrencies, with Ethereum surging 20% in a week to $1,564, hitting a two-month high over the weekend, according to Yahoo Finance.
Solana posted the biggest gains, up 62% for the week, to $23.31. On Monday, the market capitalization of cryptocurrencies reached $1.02 trillion, up about 1.2% in 24 hours.
The influx of capital into the cryptocurrency sector comes amid renewed investor confidence that the US Federal Reserve is working to tame inflation without tipping the economy into recession.
The successive increases in interest rates by the central bank have led to fears of a depletion of liquidity, which will lead to a recession in the economy and a decline in the gross domestic product.