Bitcoin and Ethereum are on track for their finest month since 2021.

The world’s two most valuable digital currencies, Bitcoin and Ether, are on set for their best month since 2021, thanks to a recovery of risk appetite in global markets and anticipation of an Ethereum network update.

Bitcoin is up 28% in July, while Ether is up 70%, albeit both are down on Friday. As of 5 p.m. in New York, Bitcoin was worth around $23,950 and Ether was worth about $1,730. Because of growing signs of a US economic downturn, some investors believe the Federal Reserve will stop raising interest rates by the end of the year and may even switch to cutting borrowing costs in 2023.

This would, in turn, create a more favourable atmosphere for speculative assets such as cryptocurrency, which has suffered this year.