BackBitcoin surges the most since February after weekend selloff
The world’s largest cryptocurrency advanced 12% to trade around $37,598 as of 1:17 p.m. in New York
PremiumBitcoin rebounded from its roller-coaster weekend, with prices on track for the biggest gain in more than three months.
The world’s largest cryptocurrency advanced 12% to trade around $37,598 as of 1:17 p.m. in New York. It climbed as high as $38,683 at one point. Digital currencies have been gripped by volatility in the past two weeks, with Bitcoin prices plunging as much as 18% on Sunday.
Traders may be feeling more positive as the crypto industry holds one of its biggest conferences of the year this week. Federal Reserve Governor Lael Brainard noted at the Consensus conference that a big issue for central banks with regard to a digital currency is the impact on the financial system.
If people can keep digital dollars in a wallet that’s unrelated to a bank account, and easily use that wallet to make payments and transfers, that then undermines the commercial banking system, Brainard said. It could starve the banks of deposits, which of course are vital for making loans, she noted.
Bridgewater’s Ray Dalio said there is little incentive right now to hold dollars with no interest being paid. Eventually people will go to “almost anything else" -- stocks, gold, Bitcoin and real estate, he said during the conference webcast.
Meanwhile, in a separate panel at the virtual conference, Wyoming Senator Cynthia Lummis said Bitcoin was a “friendly asset that everybody can hold," and added that she sees it as “leveling the playing field." And when it comes to government or central-bank backed digital currencies, “we have to compete with China," Lummis said. “We want to make sure that we continue to be strong in innovation in the digital-asset space."
“Love or hate it, Bitcoin is impacting markets," said Amy Wu Silverman, equity derivatives strategist at RBC Capital Markets, in a note Sunday. “What is Bitcoin—a currency? A 1-for-1 manifestation of Elon Musk’s thoughts? A ‘factor’ of momo+meme+speculation+angry Gen Z’s? Like a tween Justin Bieber, you don’t know what Bitcoin will be yet -- but you have a feeling it will be big."
Ether, the second-largest token, also rebounded on Monday, jumping more than 23% at one point Monday to about $2,559.
The extreme volatility of late has prompted analysts to try guessing the outlook for digital currencies, with a JPMorgan Chase & Co. team saying it’s premature to call the end of the Bitcoin selloff. Goldman Sachs Group Inc. signaled that extreme swings hamper crypto’s appeal for institutional investors.
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This story has been published from a wire agency feed without modifications to the text.
