© Reuters
Investing.com– Rebounded to its highest level since the merger on Wednesday, while QuelLe hit a three-week high on rising expectations of dovish signals from the Federal Reserve weakening the dollar.
Ethereum explodes by 14.54% over 24 hours to $1540 at 11am. Bitcoin rose 7.15% to $20,675, trading above the $20,000 level for the first time in three weeks.
The gains in both tokens reflected a broader uptrend in the cryptocurrency market as the dollar retreated. Data from Coinmarketcap shows that the total cryptocurrency market capitalization is within $30 billion of the $1 trillion mark.
Markets expect a sharp economic slowdown in the United States to prompt the Fed to soften its hawkish stance. Although the central bank is still expected in November, traders are betting that the bank will slow the pace of its rate hikes the following month.
Tuesday’s data showed that prices fell over the past month. This reading follows data that showed a prolonged contraction in US industrial activity in September.
The prospect of a less hawkish Fed weighed on the dollar, as the greenback fell over the past four sessions. The indices and were flat on Wednesday, trading at 111, their lowest level in more than two weeks.
Dollar weakness helped cryptocurrency markets break out of a narrow trading range seen over the past two months. But as with previous breakouts, it remains to be seen if the market can sustain its uptrend.
Markets were also buoyed by reports that several wealthy Asian investors were buying crypto, especially bitcoin.
Last month, the world’s largest cryptocurrency soared as high as $22,700 before falling back to near yearly lows. The token and the broader crypto space suffered heavy losses this year as the Fed began to tighten monetary policy.
By Ambar Warrick