Bitcoin, ether and other cryptocurrencies were rising on Monday amid a broader market rally, as fears about a new, heavily-mutated version of COVID-19 eased.
largest digital asset with Market capitalization of approximately $1.1 trillion, was up more than 6% from Friday’s low of $53,700 to nearly $57,000, According to price data from CoinDesk,
second largest crypto, rose more than 8% It has dropped from Friday’s low of $4,000 to around $4,300.
Tokens were all higher in the digital asset space including Solana, Cardano, Dogecoin and Shiba Inu.
“The weekend concerns all but 7% losses of bitcoin on Friday, as the power of buy-the-dip is an irresistible allure,” said Jeffrey Haley, an analyst at broker Oanda. “A rise above $58,500.00 indicates a return to 60,000.”
The cryptocurrency was not spared from the broader market slump on Black Friday, which took the Dow Jones Industrial Average to its worst day this year and saw oil prices drop 10%. Bitcoin and Ether are down 10% each day.
Digital assets like bitcoin have been favored as investments partly because, in theory, they are considered to be separate from mainstream financial market pressures, and even a hedge against volatile stock markets. Could be too. But Friday’s poor performance shows when crypto investors’ nerves can be as bad as those of traders in stocks, bonds, commodities and other assets.
“Bitcoin is not hedging much,” Neil Wilson, an analyst at BrokerMarkets.com, said on Friday.