Bitcoin Bounces Back, Rises 7.6% To Sit Above $20,400
Bitcoin has bounced back on Sunday after rising around 7.6% to sit at $20,404.
This is against its previous close which was below $18,000.
This sudden rise signals recovery of the cryptocurrency which has made many investors lose hugely.
Bitcoin is now up 16.7% from this year’s low of $17,592.78 on June 18.
Recall that Bitcoin had tumbled to as low as $17,592 on June 18, sending more panic waves across the crypto market.
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With the fall, investor worried about growing troubles in the crypto industry and amid a general pull-back from riskier assets.
Andrew Brenner, head of international fixed income at National Alliance Securities, on Sunday said the rise in Bitcoin was likely the result of retail investors buying up the digital currency over the weekend, when few professional traders are working.
“Some buyers think now is a good time to get in because Bitcoin got down to a level which shows some near-term attractiveness,” Brenner said. He added that Bitcoin and other digital currencies remained extremely volatile.
Ether , the coin linked to the ethereum blockchain network, on Sunday rose more than 13% to $1,131 from its previous close on Saturday, which at $993 marked Ether’s lowest price since the beginning of this year.
The sell-off in the crypto market has coincided with an equities slide, as U.S. stocks suffered their biggest weekly percentage decline in two years on fears of rising interest rates and the growing likelihood of a recession.
Brenner said digital currencies were not a good investment at a time when the U.S. Federal Reserve tightens the supply of dollars by ending expansive monetary policy.
“As long as the dollar continues to show strength, digital currencies is not where you want to be,” Brenner said.
Culled from Reuters
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