The price of Bitcoin (BTC) continues to recover following an interest rate hike from the U.S. Federal Reserve earlier in the week.
On Sept. 18, Bitcoin is trading at $78,000 U.S., having gained 2% in the past 24 hours and rising from near $75,000 U.S. heading into the interest rate decision on Sept. 16.
Bitcoin and other cryptocurrencies such as Ethereum (ETH) had slumped heading into the Fed meeting as higher interest rates are typically bad for risk assets.
However, BTC and other digital assets have staged a quick recovery after the U.S. central bank raised its trendsetting Fed Funds Rate by 25 basis points.
Analysts say that crypto is participating in a relief rally alongside stocks as the market welcomes slightly higher interest rates that are used to lower inflation.
Also giving a lift to crypto heading into the weekend are declining crude oil prices and government bond yields.
After trading near $105 U.S. per barrel, West Texas Intermediate (WTI) crude oil, the American benchmark, briefly fell back below $100 U.S. a barrel on Sept. 18.
The yield on the 10-year Treasury is at 4.976% after breaching the key level of 5% at the start of the trading week.
Many analysts say they are encouraged to see Bitcoin hold onto the gains it has achieved since late August when it was trading below $65,000 U.S.
Prior to the latest Fed rate decision, BTC’s price had been as high as $82,000 U.S. Most analysts seem to agree that the price needs to rise above resistance at $80,000 U.S.
