Bitcoin capped a week’s gains on Friday by hitting its highest price level in nine months, although not all cryptocurrency-related products emerged unscathed from the market turmoil.
At 5pm on Friday, Bitcoin was trading at $26,791.16, up 8.46%, marking the highest level at 5pm since June. (It was trading at $27,460.70 early Saturday.) Ethereum and Dogecoin were up 5.1% and 7%, respectively. All three have traded higher every day for the past week. Likewise, crypto exchange platform Coinbase Global (ticker: COIN) received…
Bitcoin
capped a week of gains on Friday by hitting its highest price level in nine months, although not all cryptocurrency-related products emerged unscathed from the market turmoil.
At 5pm on Friday, Bitcoin was trading at $26,791.16, up 8.46%, marking the highest level at 5pm since June. (It was trading at $27,460.70 early Saturday.) Ethereum and Dogecoin were up 5.1% and 7%, respectively. All three have traded higher every day for the past week. Similarly, crypto exchange platform Coinbase Global (ticker: COIN) has gained more than 37% in the past five days.
That may sound counterintuitive, given that the banking crisis was started by the turmoil at Silicon Valley Bank and other crypto-friendly banks have closed their doors.
In fact, many investors are nervous: As Barron’s reported that investors withdrew about $255 million from investment products that hold digital assets this past week. Outflows came from both bullish and bearish funds, meaning some may think the worst of crypto’s punishment is over.
There was certainly a lot of pain to go around earlier this month, as Silvergate Bank’s demise preceded SVB’s; in that sense, investors may feel that cryptos have already been breathed enough. Despite last week’s rally, Bitcoin is still down nearly 40% over the past year and has fallen more than 63% from its November 2021 all-time high of $67,802.30.
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Similarly, ongoing hopes of looser monetary policy tend to lift crypto, which flourished under the low interest rate regime that had dominated the past decade. Other speculative investments have also flourished, while at the other end of the spectrum, Big Tech companies have emerged as unlikely defensive plays amid the recent market selloff.
Nonetheless, crypto prices are nothing if not volatile. The big gains of the last week can quickly be forgotten if feelings worsen.
Write to Teresa Rivas at [email protected]
