Bitcoin and Ether Are on Track for Their Best Month Since 2021

Bitcoin and Ether, the world’s two largest digital tokens, are headed toward their best month since 2021 amid a revival of risk appetite in global markets and optimism about an Ethereum network upgrade. Bitcoin is up 28% in July and Ether 70%, though their rallies paused Friday. Both were little changed, with Bitcoin at about $23,950 as of 5 p.m. in New York and Ether hovering around $1,730.

Growing signs of a US economic slowdown are leading some investors to the view that the Federal Reserve will be done raising rates by year-end and might even pivot to cutting borrowing costs in 2023. That in turn would create a more favorable backdrop for speculative assets such as crypto, which has taken a drubbing this year.

Cryptocurrencies are trying to recover from a rout this year that’s wiped more than 50% off the MVIS Crypto Compare Digital Assets 100 index. Earlier this year, virtual coins were buffeted by the Fed’s shift to monetary tightening and ensuing leveraged blowups, such as crypto hedge-fund Three Arrows Capital.