As Bitcoin price briefly goes above $20,000 mark, industry observers say, ‘Don’t get happy too early’

Amidst the frozen cryptocurrency market, Bitcoin bagged its biggest gain in a week. The global cryptocurrency market cap increased 4.78% to $961 billion over the day while Bitcoin traded over $21,000, according to CoinMarketCap, at the time of writing (1.18 pm, India time).

According to experts, the overall market seemed to be on a bullish sentiment. “Bitcoin’s market capitalisation was up more than 13% for this week. This is aligned with the traditional markets as investors reacted to the updated guidance from the FED officials claiming recessionary concerns are overblown,” Anndy Lian, chief digital advisor, Mongolian Productivity, a government organisation, told FE Digital Currency.

Even as cryptocurrency markets are responding in an optimistic way to the reassurance given by the US Federal Reserve which largely stressed on the fact that concerns around recession are blown out of proportion, bitcoin is still down by around 70% from its all time high and 50% lower in 2022. As per industry observers, these short term bullish cases are not sustainable.