Bitcoin extended its rally to over $19,000 on Monday in European time, following a weekend where major cryptocurrencies saw only moderate gains.
Ether (ETH) is up 5% in the past 24 hours to trade above $1,100. Solana’s SOL and Cardano’s ADA each added around 4%, while XRP and BNB gained more than 3.5%. The market capitalization increased by around 2.3%, according to data from CoinGecko.
Among the smaller tokens, avalanche’s AVAX and tron’s TRX gained more than 8%, while gains for other cryptocurrencies ranged from 2-5%. Thorchain’s RUNE gained as much as 15%, continuing its advance since the launch of mainnet last month.
Equity markets remain concerned about the slowing pace of growth, which could jeopardize the chances of a longer recovery. Japanese financial services giant Nomura said in a note on Monday that major economies could slip into recession “within the next 12 months” due to tighter government policies and rising costs.
“Increasing signs that the global economy is entering a synchronized slowdown in growth, meaning countries can no longer rely on a rebound in exports for growth, have also prompted us to forecast multiple recessions,” the Nomura analysts wrote.
Analysts said they expect Europe, the UK, Japan, South Korea, Australia, the US and Canada to slip into recession. The United States could experience a “shallow but long” five-quarter recession, and Europe could be hit much harder due to Russia’s attack on Ukraine.
Last week, Federal Reserve (Fed) Chairman Jerome Powell reiterated the US central bank’s commitment to raising interest rates to curb inflation, as reported. Mr Powell said he was more concerned about the challenge posed by inflation than the possibility of higher interest rates pushing the US economy into a recession.
The outlook for the Fed, and declining equity markets, have weighed on cryptocurrency prices this year, alongside systemic risks stemming from the market. Bitcoin has lost 57% since the start of the year, while the S&P500 has lost almost 20% over the same period.
“General caution remains in order,” Susannah Streeter, market analyst at Hargreaves Lansdown, told CoinDesk in an email. “Investors are nursing the wounds of a murderous first half”.
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