Bitcoin rise to more than $ 40,000 on Tuesday, regaining some ground after falling for seven of the last eight days.
The biggest and best known cryptocurrency gained 0.8%, to $ 40,160, gaining ground while initially receding.
Ether was also boosting at the same time, just over $ 3,000. Some smaller cryptocurrencies were trading higher, with Avalanche up 3.8% and Polkadot up 2.3%.
Bitcoin and the wider crypto market have been hit in recent weeks as the Federal Reserve’s expressed willingness to raise interest rates (which has already begun) in order to beat persistently high inflation and geopolitical turmoil have hit investment sentiment risk.
Inflation in the US for March on an annual basis is expected to reach around 8.4% at the highest level since the beginning of 1982.
The correlation between cryptocurrencies and US tech stocks has risen in recent weeks, indicating that investors view digital assets as vulnerable in the context of tighter monetary policy.
According to Jeffrey Halley, senior analyst at Oanda, the technical “limits” for Bitcoin are currently at $ 36,500 downwards and $ 47,500 upwards. A “break” above or below them could lead to a rise or fall of up to $ 18,000, Halley said.