Bitcoin, the world’s largest and most well-known cryptocurrency, is up more than 16% from this year’s low of $17,592.78 on June 18 as it plunged on investor concerns about growing problems in the crypto industry and amid a broader pullback from riskier assets .The price of the coin declined somewhat to $19,781.69 as of Sunday night, according to Coinmarketcap.
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.
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.
– CNN’s Rob McLean contributed to this report