Bitcoin mimics stocks rally, touches two-week high

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Short Description: Bitcoin mimics stocks rally, touches two-week high

 


 

Bitcoin mimics stocks rally, touches two-week high

 

Bitcoin hit its highest in two weeks on Saturday, extending the previous session's strong gains as cryptocurrencies basked in a recovery in risk appetite and a rally in stock markets.

The world's largest cryptocurrency hit USD41,983, taking gains from Thursday's lows to nearly 16%, and marking a 27% rise from the year's low of USD32,950.72 on January 24.

Ether, the coin linked to the ethereum blockchain network, scaled the USD3,000 level for the first time since January 21.

Friday's 11%-plus was the biggest single-day gain for bitcoin since mid-June, and the first major bounce after weeks of being roiled, along with technology and growth stocks, by fears of faster-than-expected Fed rate hikes to curb a surge in inflation.

It came alongside a rally in US stocks, with the tech-heavy Nasdaq ending the week with gains despite the heavy volatility from earnings, including Amazon's robust growth and Facebook-owner Meta Platforms Inc's disappointing results.

Those synchronised moves showed how bitcoin has become far more of a mainstream asset, jolted by swings in risk-appetite.

"The current panic and volatility surrounding bitcoin is based on a fundamental misunderstanding of it as an asset class," said Ed Hindi, chief investment officer of Swiss-based cryptocurrency hedgefund Tyr Capital.

"When valuations on the Nasdaq fall, misguided institutional investors start liquidating bitcoin positions en-masse as if it were a tech stock."

The recovery in stocks boosted other listed crypto assets on Friday, with miner Riot Blockchain getting a bump after declaring bitcoin production more than doubled in January from a year earlier.

Marathon Digital Holdings rallied after reporting bitcoin production increased, as did crypto exchange Coinbase Global, which rose more than 7%.


( Details and picture courtesy Gadgetsnow, the content is auto-generated from RSS feed.)

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