© Reuters. A picture of a cryptocurrency bitcoin sinking in the water in this illustration was taken, May 23, 2022. REUTERS/Dado Ruvik/Illustration
By Tina Bellon
(Reuters) – On Sunday, it rose by about 7.6 percent to $ 20,404 from its previous close, in a sign of a recovery from a sharp drop on Saturday.
Bitcoin, the world’s largest and most popular cryptocurrency, is now up 16.7% from this year’s low of $17,592.78 on June 18, when it stumbled on investor concerns about growing problems in the crypto industry and amid a general slide in riskier assets.
Andrew Brenner, head of international fixed income at National Alliance Securities, said Sunday that the rise in bitcoin was likely the result of retail investors buying the digital currency over the weekend, when a few professional traders are operating.
“Some buyers now think it’s a good time to get in because bitcoin has reached a level that shows some near-term attraction,” said Brenner. He added that Bitcoin and other digital currencies remained very volatile.
Ether, which is linked to the Ethereum blockchain, rose more than 13% on Sunday to $1,131 from its previous close on Saturday, which at $993 represented the lowest price for Ether since the beginning of this year.
The selloff in the cryptocurrency market coincided with a decline in stocks, as US stocks suffered their biggest weekly percentage decline in two years on fears of higher interest rates and the growing possibility of a recession.
Brenner said digital currencies were not a good investment at a time when the US Federal Reserve is tightening the dollar supply by ending expansionary monetary policy.
“As long as the dollar continues to show its strength, digital currencies will not be where they want to be,” Brenner said.