Bitcoin is heading for its best weekly gain since October of last year, certainly helped by the return of risk appetite in the broader global markets.
The largest cryptocurrency by market cap is up more than 13 percent this week Friday morning — and if the move were its biggest gain for such a period since 2021. As of 11:10 a.m. UAE local time on Friday, bitcoin was up 6.98 percent at $21,767.30.
According to data from CoinGecko, other coins like Ether, Avalanche, and Solana have also performed strongly over the past few days, helping the cryptocurrency pull back more than $1 trillion in total market cap.
A stock rally amid a positive correlation between the two asset classes provides some much-needed respite for troubled virtual coins. However, bitcoin remains more than 50 percent lower in 2022, hurt by tight money and a series of explosions in a digital asset sector that still relies on leverage.
Ben McMillan, chief investment officer at IDX Digital Assets, said “risk markets exist across the board” and therefore “it’s not surprising that crypto is trading higher.” “After the bad news and big liquidations, many crypto investors are still sitting on the sidelines waiting for the next shoe.”
The tide of economic risks in cryptocurrencies and the risk of lore remain a concern. The news that clients of bankrupt broker Voyager Digital won’t get all their money back has sparked a new kind of fear among investors who are normally able to weather major market downturns.
“Many institutional Bitcoin holders may be particularly sensitive to broader economic developments,” said Jared Madface, a partner at Tribe Capital.
Updated on: Jul 08, 2022 7:15 am
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