Bitcoin and other cryptocurrencies are rallying once again as investors pile back into risk-sensitive assets like tech stocks and digital assets.
Bitcoin has risen more than 10% in the past five days. The coin has been in a slump over the last few months, but analysts are optimistic it could continue to rise.
June and July were brutal months for cryptocurrencies. Bitcoin dropped 37.3% in June alone, giving it the largest fall since 2011. The major sell-off led to job cuts in many crypto companies and even forced some lenders to pause withdrawals. Nevertheless, Bitcoin is rising again.
“This was one of the worst quarters on record pretty much everywhere across the equity market, across the bond market, across a lot of different places,” says Arca Funds CIO Jeff Dorman.
The past 24 hours has been the largest crypto has rallied following Friday’s strong jobs report, which showed 528,000 new jobs were created in July, more than double what economists had predicted.
“Bitcoin got its groove back,” says Oanda analyst Edward Moya. The token had seen its best two days since June 20.
At just under $25,000, Bitcoin continues to trade at less than half its record-high price near $69,000, which it hit in November 2021. Analysts and investors are keeping a close eye on it to see if this rally is here to stay or if it will once again fall flat.
Other cryptocurrencies have seen a recent rise as well. Ether, the second largest token, has risen over 12% in the last few days.
