Bitcoin rose nearly 7.6% from its previous close on Sunday to $20,404, indicating a recovery from Saturday’s sharp drop.
Bitcoin, the world’s largest and best-known cryptocurrency, is now up 16.7% from its low of $17,592.78 on June 18 of this year, when it fell on investor concerns about growing troubles in the crypto industry and riskier assets. Between a normal pull-back.
Andrew Brenner, head of international fixed income at National Alliance Securities, said on Sunday that the rise in bitcoin was a result of retail investors buying the digital currency over the weekend, when some professional traders were working.
“Some buyers think now is a good time to get involved as bitcoin has dropped to a level that shows some near-term attractiveness,” Brenner said. He noted that bitcoin and other digital currencies have been extremely volatile.
Ether, the coin tied to the Ethereum blockchain network, on Sunday rose more than 13% to $1,131 from its previous close on Saturday, marking Ether’s lowest price of $993 since the beginning of this year.
The sell-off in the crypto market coincided with an equity slide, as US stocks suffered the biggest weekly percentage drop in two years on fears of rising interest rates and the prospect of a recession.
Brenner said digital currencies were not a good investment at a time when the US Federal Reserve tightened the dollar supply by ending detailed monetary policy.
“As long as the dollar continues to show strength, digital currencies are not where you want to be,” Brenner said.
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