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 $41,983 (roughly Rs. 31,33,700), taking gains from Thursday’s lows to nearly 16 percent, and marking a 27 percent rise from the year’s low of $32,950.72 (roughly Rs. 24,59,500) on January 24.
Ether, the coin linked to the Ethereum blockchain network, scaled the $3,000 (roughly Rs. 2,23,900) level for the first time since January 21.
Friday’s 11 percent-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’ 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 seven percent.
© Thomson Reuters 2022
Cryptocurrency is an unregulated digital currency, not a legal tender and subject to market risks. The information provided in the article is not intended to be and does not constitute financial advice, trading advice or any other advice or recommendation of any sort offered or endorsed by NDTV. NDTV shall not be responsible for any loss arising from any investment based on any perceived recommendation, forecast or any other information contained in the article.