The bitcoin exchange rate has risen above $20 thousand

During Tuesday's trading, the bitcoin exchange rate reached its maximum value in more than a week, rising to $20305. At the same time, the cryptocurrency has not yet been able to break through the narrow price corridor indicated after a sharp drop in the market this summer – since June, bitcoin has been fluctuating in the range between $18 thousand and $25 thousand. 

The decline in the crypto market, which led to a depreciation of almost $2 trillion since the peak in November last year, was caused by an increase in interest rates by central banks of the world, as well as a wave of bankruptcies and debt problems affecting many companies in the cryptocurrency sector.

As you know, changes in the monetary rhetoric of the world's central banks also affect the dynamics of the cryptocurrency market, since digital currencies are closely linked to the US stock market. The increase in interest rates put pressure on the S&P 500 and Nasdaq indices, which transferred to other risky assets, including cryptocurrencies.

However, this time the growth in the crypto market, which began on Monday, diverges from the dynamics of the stock market. US stocks are falling, and the Dow Jones Industrial Average ended trading in the red zone (that is, it fell by 20% or more from the last peak) for the first time since the beginning of the coronavirus pandemic.

It's not just bitcoin that is growing today. Ether is also showing a rise – to the level of $1,399. In mid-September, The Merge software update was activated on the Ethereum network, which transferred the ether blockchain to a new algorithm designed to dramatically reduce electricity consumption during mining. The update led to a 25% decrease in the cryptocurrency.