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Bitcoin Bounces Back Above $37,000 After Weekend Selloff

Published 24/05/2021, 13:42
© Reuters.
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(Bloomberg) -- Bitcoin rebounded from its roller-coaster weekend, with prices on track for the biggest gain in more than three months.

The world’s largest cryptocurrency was trading 12% higher around $37,800 as of 7:37 a.m. in New York. Digital currencies have been gripped by volatility in the past two weeks, with Bitcoin prices plunging as much as 18% on Sunday.

Traders may be feeling more positive as the crypto industry prepares for one of its biggest conferences of the year. The event, called Consensus by CoinDesk brings together executives, including Grayscale Investments chief Michael Sonnenshein and Binance Holdings Ltd. CEO Changpeng Zhao, for their views on everything from crypto asset management to decentralized finance.

Investing executives and policymakers, such as Bridgewater Associates LP Founder Ray Dalio and Federal Reserve Governor Lael Brainard, are also slated to speak.

“Love or hate it, Bitcoin is impacting markets,” said Amy Wu Silverman, equity derivatives strategist at RBC Capital Markets, in a note Sunday. “What is Bitcoin—a currency? A 1-for-1 manifestation of Elon Musk’s thoughts? A ‘factor’ of momo+meme+speculation+angry Gen Z’s? Like a tween Justin Bieber, you don’t know what Bitcoin will be yet -- but you have a feeling it will be big.”

Ether, the second-largest token, also rebounded on Monday, jumping 14% to about $2,300.

The extreme volatility of late has prompted analysts to try guessing the outlook for digital currencies, with a JPMorgan Chase & Co. team saying it’s premature to call the end of the Bitcoin selloff. Goldman Sachs) signaled that extreme swings hamper crypto’s appeal for institutional investors.

©2021 Bloomberg L.P.

 

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