Bitcoin hit its highest price of $41,983 in two weeks, extending the previous stocks rally high gains as other cryptocurrencies recover in risk appetite. This marks a rise of 27 percent as compared to the value of $32,950.72 two weeks back on 24th January.
Ether, the coin linked to the Ethereum blockchain network, scaled the $3,000 level for the first time since January 21.
Friday’s 11 percent-plus increase 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 synchronized 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 are based on a fundamental misunderstanding of it as an asset class,” said Ed Hindi, a 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 also boosted other cryptocurrency derivatives along with miner Riot Blockchain getting a jump, Marathon Digital Holdings rally, and digital exchange company, Coinbase Global, rising more than 7 percent after stating that production of Bitcoin has increased tremendously from a year ago.