Over the past 24 hours, the capitalization of Bitcoin has increased by almost 2% to $391.79 billion.
Despite the bounce above $20,000, BTC continues to trade in a tight range. According to Arcane Research, the weekly bitcoin volatility index has fallen to its lowest level since early April.
Nevertheless, in monthly terms, this indicator is still high, the researchers emphasized.
The lull came after the collapse of the coin below $20,000. Most likely, the retreat could resume in the coming weeks, as the Federal Reserve is ready for another rate hike, DeFinance ETFs chief executive Sylvia Jablonsky predicts.
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The “crypto fear and greed” index rose to 19 points this week, its highest reading in two months. According to analysts at Arcane Research, investor sentiment improved briefly after the partial return of capital to the cryptosphere.
Timothy Peterson of Cane Island Alternative Advisors also believes the recovery is temporary.
The market is still in a bear phase. Bitcoin could lose up to 40% in value as the US economy plunges into recession. In this case, a strong fall in the technology sector is inevitable, the expert predicts.