Prices for Bitcoin (BTC) and other cryptocurrencies are rising to begin the trading week as crude oil prices continues to drift lower.
In early trading on June 22, Bitcoin was up 0.58% and trading at $64,500 U.S. Heading into the weekend, BTC had been as low as $62,000 U.S.
Ethereum (ETH), the second largest cryptocurrency after Bitcoin, is up nearly 2% on the day and trading at $1,760 U.S.
Digital assets appear to be rebounding following a downturn late last week after the U.S. Federal Reserve turned hawkish on interest rates.
The U.S. central bank indicated that interest rates are likely to rise in this year’s second half as it battles stubbornly high inflation that is above 4% in America. The Fed targets inflation at 2%.
Higher interest rates are bad for risk assets such as crypto, pressuring the prices of Bitcoin, Ethereum, and other crypto heading into the weekend.
However, inflation is likely to ease as crude oil prices continue to decline after the U.S. and Iran signed a lasting peace agreement last week.
Brent crude oil, the international standard, is currently trading $79.10 U.S. per barrel. In recent months, the price had been above $110 U.S. a barrel, sparking a sharp rise in inflation.
Bitcoin and other crypto have responded favorably to declines in oil prices this year and that trend appears to be continuing, say some analysts.
BTC has been trading in a range of $60,000 U.S. to $65,000 U.S. so far in June.
