The green color dominated the performance of some major digital currencies during Tuesday’s trading, coinciding with the trend of investors to implement quick selective purchases with the aim of taking profits, amid an increase in temporary demand for assets that bear investment risks, with the continued weak performance of the US dollar ahead of the Federal Reserve’s meeting at the end of this month.
During Tuesday’s trading, Bitcoin, the most valuable cryptocurrency in the world, rose to exceed its highest level in more than a month, recording 2.6%, to reach $22.34 thousand, and crossed the level of $21,000 for the second time in a row this week.
Today, the Bitcoin currency moved to the highest levels it has been moving in for more than a month, amounting to 19 thousand and 21 thousand dollars, in light of the attempts of investors to absorb their losses as a result of tightening monetary policies.
Bitcoin was stuck in its narrowest trading range in nearly two years in September, partly reflecting uncertainty about how far central banks will go in raising interest rates in the face of a slowing global economy, amid the inability to determine the direction.
And the consecutive rise for the fourth consecutive sessions confirms that there is pent-up demand for (Bitcoin), which has been trading in a relatively narrow range during the past two months with low volatility, according to what analysts indicated to “Bloomberg”.
As for the rest of the digital currencies during today’s trading, the Ripple currency rose by 0.9% to reach $0.35592, and the Solana currency jumped by 10% to reach $38.53.
During Tuesday’s trading, the price of Ethereum, the second most valuable digital currency, continued to decline slightly, estimated at that hour by 0.7%, reaching $1.721.
While the Binance Coin fell 0.3% at the level of $293.3, the Cardano coin fell by 1.3% to $0.5062.
The market capitalization of cryptocurrencies in that hour fell to about $1.06 trillion from $1.07 billion, according to CoinMarketCap data.
It is noteworthy that the riskier assets were negatively affected in the past sessions by expectations that interest rates will continue to rise, and to remain at those levels until inflation slows in the United States.
Financial markets are currently expecting the Federal Reserve to raise interest rates by 75 basis points for the third consecutive meeting in September, followed by an increase of 50 basis points in November, and then a 25 basis point hike in December, with the central bank starting to cut interest rates in the fall 2023.