Bitcoin rises after longest losing streak

Bitcoin moved higher over the weekend as cryptocurrency traders look for a bottom following a rough six months of selloff.

The largest cryptocurrency by market cap about 4% and trades on Monday at $31,298.76. Ether has advanced nearly 5% to $1,855.86.

Crypto has continued to move together with stocks. All three of the major stock averages were higher on Monday, as well. Investors have been holding their breath while watching prices across risk assets move higher. Most traders were uncertain if the moves are temporary or if a more permanent reversal is finally reached.

Some economists believe this relief rally is a bull trap, and that bitcoin may have a short-lived gain but is more than likely going to resume the downward trend. Markets have seen this scenario for the past two months.

Uncertainty in the global economy due to high inflation and the likelihood we are in a recession, paired with the prevalence of central bankers raising rates, is likely going to force all assets downward at least through the end of 2022 summer.

Economists still believe this union of factors could potentially lead bitcoin to fall as low as $22,000 before rallying later this year, mainly during Q4 because that level is where several institutions and large corporates bought in and they are highly unlikely to let their trade go too far underwater.

Last week, Bitcoin and Ether both turned to the green territory for their first positive week in nine. That was the longest-running losing streak for the cryptocurrencies.

Bitcoin has more than halved since hitting its all-time high of $68,982.20 in November. It was trading in a tight range this year before falling below $30,000 this month after the Terra collapse.