Bitcoin (BTC) Pops 8.6% in 24 Hours, More Than 12% for the Week, Crossing $22,000

This relief rally sees Bitcoin at its highest point in three weeks, and it's on track for its highest weekly close of 2022.

The first and most valuable asset within the cryptocurrency universe was tracking higher in intraday trading as Bitcoin reached a peak price of $22,314 across cryptocurrency exchanges, representing a jump of 8.6% for the day, and more than 12% over the past week, according to CoinMarketCap. If it maintains the current price range above $21,000 it will have its highest weekly close of the year. That would be a significant rebound for Bitcoin, which experienced a 45% loss in June 2022, marking its worst monthly drop since it was founded in 2008.

Bitcoin and the crypto market in general have been hard hit by the macroeconomic downturn that has hurt nearly all asset classes including stocks, bonds, commodities, collectibles, and precious metals during the past several months.

Last month, the U.S. Bureau of Labor Statistics announced that the consumer price index -- also known as the inflation rate -- increased 8.6% in May compared to May 2021. That jump was the largest increase in 40 years. Coupled with raising interest rates by the Federal Reserve to cool down inflation and rising tensions surrounding the Russia-Ukraine conflict, the geopolitical repercussions are driving up energy costs, causing supply chain issues, and stifling consumer activity. These economic challenges have been real and agnostic toward asset groups.

Is Bitcoin a buy?

Bitcoin was originally conceptualized in 2008 as a peer-to-peer payment service and an alternative to fiat currencies. Since then, it has largely transformed into a store of value that has long been touted as a hedge against inflation. However, that hasn't panned since its all-time high of $68,789 price per coin set on Nov. 10, 2021, and it is down 68% from that top price while inflation has increased more than 5% every month for more than a year.

This is not financial advice, and every investor needs to fully understand what they're investing in and how much they can comfortably afford to lose. However, Bitcoin is the most established and valuable cryptocurrency within the entire space. It's gone through two bear cycles losing more than 80% of its value and rebounded to new highs after each downturn. There's no reason to believe this current bear cycle will be any different, and it's possible we may never see Bitcoin priced at such steep discounts again.