Bitcoin Snaps Slide With Biggest 1 Day Gain Since November
Bitcoin Snaps Slide With Biggest One-Day Gain Since November
Bitcoin ends a five-day slump, jumping about 7% to around $13,400 after a surge in buying by investors hoping to profit from a sharp fall in the cryptocurrency’s value over the last several days.
We saw a breakdown in sentiment and a little bit of bargain hunting from people that were in bearish mood,” said Charles Hayter, co-founder of data analysis website Cryptocompare.
The key thing is that bitcoin bounced off a really low price on the 24th which is a sign that it hasn’t reached the end of the world.
Bitcoin, the largest cryptocurrency by market value, was last up 7.7% at $13,362.19 on Luxembourg-based Bitstamp exchange. It tumbled more than 26% since reaching a record high of $19,666 on Dec. 17.
Other cryptocurrencies also rose after a selloff that drove bitcoin to its lowest since November, with Ethereum and Ripple last up 8.5% and 13%, respectively. Bitcoin has slumped about 26% over the past five sessions, while the broader cryptocurrency sector has lost about a third of its value in the same period.
As bitcoin fell, the crypto-currencies served as a barometer of investor sentiment amid concerns that a rapidly swelling bubble could be set to burst.
While Bitcoin investors and analysts believe that any serious threat to the cryptocurrency’s viability would drive investors away, analysts at Goldman Sachs Group Inc and Morgan Stanley warned on Tuesday that bitcoin is in a bubble that could burst.
Goldman Sachs strategists said the cryptocurrency is fairly valued at $6,500, according to CNBC, adding that the firm could downgrade its bitcoin forecasts if it breached the $6,500 level.
Their view is in line with other Wall Street banks and brokerages, which have varied from $11,000 to as much as $50,000.
In other futures trading on the Cboe Futures Exchange, the most-active contract was up 3% at $11,305.
Ripple coins reached an all-time high of $2.81 on Tuesday, up 4.5% since the beginning of the year.
Meanwhile, bitcoin cash, another crypto-currency, was trading at $4.95.