Bitcoin traded above $21.2K on Tuesday, leading a relief rally that saw most cryptocurrencies rise following weeks of bearish pressure.
Solana’s SOL traded up more than 7%, while the world’s second-largest cryptocurrency Ethereum gained almost 3% to trade at around $1,158. Polkadot gained more than 3%, while Cardano added almost 2%.
Despite the gains on Tuesday, analysts are pointing out that the rally could only be for a brief moment. Anton Gulin, a regional director of crypto exchange AAX, says that uncertainty still remains in the market, and the relief rally does not change the outlook.
Gulin warns that the market is highly watching the Federal Reserve’s move amid the growing inflation. He says such market moves represent an opportunity for day traders but are not lasting chances for investors looking to lower risks.
Andrey Diyakono, chief commercial officer at Choice, says that the macroeconomic environment is unlikely to support a lasting recovery in crypto markets. He warns that crypto markets are yet to hit bottom, and more downsides will be experienced.
BTCUSD is up +2.60%, ETHUSD is up +3.55%.
Source: CoinDesk
