Bitcoin recovers, climbs 7.6% to pass $20,400 By Reuters

© Reuters. A view of a representation of the Bitcoin cryptocurrency sinking into water in this illustration taken May 23, 2022. REUTERS/Dado Ruvic/Illustration

By Tina Bellon

(Reuters) – On Sunday rose around 7.6% to $20,404 from its previous close, signaling a recovery from a sharp decline on Saturday.

Bitcoin, the world’s largest and best-known cryptocurrency, is now up 16.7% from this year’s low of $17,592.78 on June 18, when it fell due to investor concerns over growing problems in the crypto industry and amid a general pullback from riskier assets.

Andrew Brenner, head of international fixed income at National Alliance Securities, said on Sunday that Bitcoin’s rise was likely the result of retail investors buying the digital currency over the weekend, when few professional traders work.

“Some bulls think it’s a good time to get in because Bitcoin has fallen to a level that shows some near-term attractiveness,” Brenner said. He added that Bitcoin and other digital currencies remain extremely volatile.

Ether, the coin linked to the Ethereum blockchain network, rose more than 13% to $1,131 on Sunday from its previous close on Saturday, which at $993 marked the lowest price for Ether since the start of this month. year.

The sell-off in the crypto market coincided with a tumble in equities, with US equities suffering their biggest weekly percentage decline in two years on fears of rising interest rates and the growing likelihood of a recession.

Brenner said digital currencies were not a good investment at a time when the US Federal Reserve is tightening the supply of dollars by ending its expansive 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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