Bitcoin on June 19 gained about 9.6% to reach $20,608 from its previous close, showing a recovery from a steep plunge on June 18. The world’s largest and best-known crypto, is now up 16% from this year’s low of $17,592.78 on June 18, when it imploded on investor worries about increasing troubles in the crypto space and amid a general pull-back from the riskier assets.
Head of international fixed income at National Alliance Securities, Andrew Brenner, on Sunday stated that the rise in Bitcoin might have been the result of retail investors buying up the digital currency during the weekend, when just a few professional traders are working.
“Some buyers think now is a good time to get in because Bitcoin got down to a level which shows some near-term attractiveness.”
He also stated that Bitcoin and other digital currencies remained highly volatile. Ether, the coin linked to the Ethereum blockchain network, on Sunday gained more than 13% to reach $1,131 from its previous closing price of $993 which marked Ether’s lowest price since the start of this year.
The sell-off in the crypto space has coincided with an equities slide, as the United States stocks suffered their largest weekly percentage drop in two years on fears of growing interest rates and the increasing likelihood of a recession.
Brenner insisted that digital currencies were not a good investment at a time when the US Federal Reserve tightens the supply of dollars by ending the extensive monetary policy. He concluded:
“As long as the dollar continues to show strength, digital currencies are not where you want to be.”