A view of a representation of the cryptocurrency Bitcoin submerged in water in this May 23, 2022 illustration. REUTERS/Dado Ruvic/Illustration
June 19 (Reuters) – Bitcoin rose around 7.6% from its previous close to $20,404 on Sunday, signaling a rebound from a sharp drop on Saturday.
Bitcoin, the world’s largest and most well-known cryptocurrency, is now up 16.7% from this year’s low of $17,592.78 on June 18 as it slumped on investor concerns over growing problems in the crypto industry and amid a broader pullback from riskier ones assets collapsed. Continue reading
Andrew Brenner, head of international fixed income at National Alliance Securities, said Sunday Bitcoin’s surge is likely the result of retail investors buying the digital currency over the weekend, when few professional traders are at work.
“Some buyers think now is a good time to jump in because bitcoin has dropped to levels that show some short-term appeal,” said Brenner. He added that Bitcoin and other digital currencies have remained extremely volatile.
Ether, the coin linked to the Ethereum blockchain network, rose more than 13% on Sunday to $1,131 from its previous close on Saturday, marking Ether’s lowest price since the start of this year at $993.
The sell-off in the crypto market coincided with a stock slide as U.S. stocks suffered their biggest weekly percentage drop in two years on fears of rising interest rates and the growing likelihood of a recession.
Brenner said digital currencies are not a good investment at a time when the Federal Reserve is tightening the supply of dollars by ending expansionary monetary policy.
“As long as the dollar continues to show strength, digital currencies are not where they want to be,” Brenner said.
Reporting by Akriti Sharma in Bengaluru and Tina Bellon in Austin, Texas Editing by Nick Zieminski
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