The price of bitcoin is currently hovering above $24,000, up more than 4% on the day as markets embraced the latest measures taken by the U.S. Central bank to combat inflation and signs that the economy is weakening but not yet entering a recession.
Despite GDP falling more sharply than anticipated, the leading cryptocurrency by market capitalization briefly crossed; the $24,000 barrier for the first time in more than a week.
For the first time since early June, Ether, the second-largest cryptocurrency by market valuation after bitcoin, surpassed $1,700. Other significant cryptocurrencies were also strongly up, with ETC and BCH both rising by more than 20% at one point.
As a result, daily traders lose on bets that the value of crypto assets will decline amount up to $400 million. Over 90,000 traders have lost everything, and the single-largest liquidation order on Huobi involved the ETH-USD trading pair, worth over $2 million.
Risk-taking is surging as the US economy shrank for a second straight quarter, increasing the likelihood that the Fed; will look to tighten at a slower pace at its next policy meeting in September.