ETCFORelated
Bitcoin rallied back Monday as investors took advantage of the lowest levels in seven weeks to pile back in. The largest cryptocurrency rose as much as 12 per cent to above $53,000, the biggest intraday gain since early February.
The move comes as JPMorgan Chase & Co. is preparing to introduce an actively managed Bitcoin fund to some clients as soon as this summer, Coindesk reported, citing unidentified people familiar with the matter. The rebound reverses a two-week slump that had pushed Bitcoin below its 100-day moving average amid technical warnings from Wall Street and fears of a growing crypto bubble.
Some pinned Monday’s move on a tweet Saturday from billionaire Elon Musk, who in the past has affected prices with his comments on the social platform.
In a potential reference to cryptocurrencies, the Tesla Inc. founder asked “What does the future hodl?”, using a term often seen as meaning “hold on for dear life” that supporters use to refer to buying and holding their digital assets.
“There is always a sharp movement when Tesla’s CEO talks about Bitcoin on Twitter ahead of quarterly earnings,” said Laurent Kssis, global head of exchange-traded products at crypto firm 21Shares AG. “As the U.S. wakes up, we could see further appreciation leading to $54,000-$54,500.”
Cryptocurrency-exposed stocks also rose. Monex Group Inc. gained 7.1 per cent, while Remixpoint Inc. increased 7 per cent and Ceres Inc. added 6.1 per cent. In the U.S., Coinbase Global Inc. was up 4.6 per cent in pre-market trading, while Riot Blockchain Inc. jumped 9 per cent.
Bitcoin futures weren’t pricing much more in the way of further gains Monday, however. April contracts rose to $53,665, while those for May through September ranged from $52,145 to $55,635, according to data compiled by Bloomberg.
“Bitcoin created a large gap down last week that could stick around far longer than bulls would want to see,” said Rick Bensignor, president of Bensignor Investment Strategies, in a note Monday.
The move comes as JPMorgan Chase & Co. is preparing to introduce an actively managed Bitcoin fund to some clients as soon as this summer, Coindesk reported, citing unidentified people familiar with the matter. The rebound reverses a two-week slump that had pushed Bitcoin below its 100-day moving average amid technical warnings from Wall Street and fears of a growing crypto bubble.
Some pinned Monday’s move on a tweet Saturday from billionaire Elon Musk, who in the past has affected prices with his comments on the social platform.
In a potential reference to cryptocurrencies, the Tesla Inc. founder asked “What does the future hodl?”, using a term often seen as meaning “hold on for dear life” that supporters use to refer to buying and holding their digital assets.
“There is always a sharp movement when Tesla’s CEO talks about Bitcoin on Twitter ahead of quarterly earnings,” said Laurent Kssis, global head of exchange-traded products at crypto firm 21Shares AG. “As the U.S. wakes up, we could see further appreciation leading to $54,000-$54,500.”
Cryptocurrency-exposed stocks also rose. Monex Group Inc. gained 7.1 per cent, while Remixpoint Inc. increased 7 per cent and Ceres Inc. added 6.1 per cent. In the U.S., Coinbase Global Inc. was up 4.6 per cent in pre-market trading, while Riot Blockchain Inc. jumped 9 per cent.
Bitcoin futures weren’t pricing much more in the way of further gains Monday, however. April contracts rose to $53,665, while those for May through September ranged from $52,145 to $55,635, according to data compiled by Bloomberg.
“Bitcoin created a large gap down last week that could stick around far longer than bulls would want to see,” said Rick Bensignor, president of Bensignor Investment Strategies, in a note Monday.
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