2 Experts Speak to CNBC What's Ahead for Bitcoin at the Weekend

Bitcoin (BTC) surged 8% on Friday, climbing above $20,000 as the US dollar weakened and stocks rallied.

After falling to its lowest level since mid-June earlier this week, Bitcoin has started to rebound. Ethereum (ETH) is also up around 4%, while the total value of the cryptocurrency market is back above $1 trillion. The dollar index (DXY) was down around 1% on Friday morning. US stock indices closed higher on Thursday. Due to the high correlation, Bitcoin tends to track stock prices. BTC tends to rise when the dollar weakens. Bitcoin has been trading between about $18,000 and $24,000 since June. BTC has failed to break through this price range. Vijay Ayyar, vice president of corporate development and international at crypto exchange Luno, said that as a result of Friday's rally, Bitcoin could test a level between $22,500 and $23,000. According to the executive, if Bitcoin fails to break the $23,00 level, it could enter a vicious cycle again and fall below $20,000. Bitcoin has disappointed investors this year. As the uncertainty in the global economy deepened, the Federal Reserve's hawkish stance and interest rate hikes hit the cryptocurrency market hard. Bitcoin has fallen more than 60% from its record high in November. The cryptocurrency market has also been affected by failed projects and companies going bankrupt in the sector. While the cryptocurrency market is going through a harsh winter, investors and the industry are counting the days for the Merge update that will make the Ethereum ecosystem more efficient and functional. Merge is expected to be completed by mid-September. When the Merge date was first announced, Ethereum caused a stir by outperforming Bitcoin. Markets are hoping for a drop in inflation when the US Consumer Price Index is released next week. Investors are also watching for signs of a Fed rate hike. On Thursday, Fed Chairman Jerome Powell said he was "strongly committed" to fighting inflation and suggested that more rate hikes could be coming. Yuya Hasegawa, chief analyst at Japanese cryptocurrency exchange Bitbank, said Bitcoin could test the $22,000 level in anticipation of falling inflation and the Ethereum Merge update, but he also issued a warning. "Given what some Fed members, including Chairman Powell, said this week, too much optimism could be dangerous," Hasegawa said in a note on Friday. Follow Global Economic Developments on Social Media! Click here to follow Ieconomy official Facebook account! Click here to follow Ieconomy official Instagram account! Click here to follow Ieconomy official Twitter account!