The price of bitcoin traded at around $24,000 on Friday, breaking a 6-week high as the stock market surged higher.
BTC was trading at around $24,412 on Friday which was its highest level in more than six weeks before plunging as low as $23,481.17 as of writing. Since reaching high levels, market players have started to take advantage and eventually pushed BTC to trade at lower levels.
The surge in the crypto market began after the Guild's Rizab increased the profit rate on Wednesday according to an expectation of 75 basic points and at the same time signaled that the rate of increase may be slow. This has driven up the stock market as well.
In other words, market players have begun to take notice of the increase in profit levels and often several trends in the stock index have 'breakout'.
Movements in cryptocurrencies have been widely traded parallel to U.S. stocks. lately, especially the Nasdaq stock index which has jumped suddenly in the past two days.
According to Vijay Ayyar, co-president of corporate and international development at crypto exchange Luno's view that, 'on the whole, I view the market as having reacted positively to the Fed's comments and arguably has priced in most of the rate hikes'.
Overall bitcoin has fallen roughly 48% this year and remains more than 60% off its all-time high of $68,990.90 hit in November.
The crypto market has been hit with a number of issues including the collapse of the stablecoin terraUSD algorithm, which sparked several follow-up events that led to the bankruptcy of lending platform Celsius and hedge fund Three Arrows Capital.
Bitcoin has been trading in the neighborhood of $18,000 to over $24,000 since mid-June and this has become a gathering level for market players.
