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.<\/p>\n
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.<\/p>\n
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.<\/p>\n
Overall, crypto’s market capitalization rose 6.6 percent on Friday to $1.35 trillion.<\/p>\n
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.<\/p>\n
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.<\/p>\n
“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.<\/p>\n