Bitcoin tops $17,000 for the first time in two weeks but analysts don’t expect the bounce to stick

Bitcoin on Wednesday rose to a three-week high as investors continued to weigh the fallout from the collapse of cryptocurrency exchange FTX.

But one analyst warned that the bounce is likely just a bear market rally and would not be sustained.

Bitcoin rose as high as $17,077.02, passing the $17,000 level or the first time in two weeks and touching its highest level since Nov. 8, according to Coin Metrics.

The largest cryptocurrency by market cap fell below that level for much of the day Wednesday but recovered in the afternoon with help from Federal Reserve Chair Jerome Powell’s comments confirming smaller interest rate hikes could start in December.

Other digital coins also rose, including ether, which was last higher by about 5% at $1,290.97.

Vijay Ayyar, vice president of corporate development and international at crypto exchange Luno, said the move higher was likely a result of “over leveraged shorts covering.”