Bitcoin was unspared Black Friday's slump.
DreamstimeBitcoin, Ether, and other cryptocurrencies were surging Monday, amid a broad market rally as fears surrounding a new, heavily mutated coronavirus variant eased.
Bitcoin, the biggest digital asset with a market capitalization of nearly $1.1 trillion, was up more than 6% to around $57,000 from Friday’s lows of near $53,700, according to price data from CoinDesk.
Ether, the second-biggest crypto, rose more than 8% to around $4,300 from Friday’s lows of below $4,000.
Tokens across the digital asset space, including Solana, Cardano, Dogecoin, and Shiba Inu were all higher.
“The weekend worries unwound all of Bitcoin’s 7% loss on Friday, as the power of buy-the-dip dangles an irresistible lure,” said Jeffrey Halley, an analyst at broker Oanda. “A rise through $58,500.00 signals a return to 60,000.”
Cryptocurrencies had not been spared Black Friday’s broad market slump, which took the Dow Jones Industrial Average to its worst day this year and saw oil prices tumble 10%. Bitcoin and Ether each fell as much as 10% on the day.
Digital assets such as Bitcoin have been favored as investments in part because they are, in theory, supposed to be mostly divorced from mainstream financial market pressure, and may even be a hedge against volatile stock markets. But Friday’s poor performance showed that when it comes to crypto, investors’ nerves can be just as frayed as traders of stocks, bonds, commodities, and other assets.
“Bitcoin not providing much of a hedge,” Neil Wilson, an analyst at broker Markets.com, had noted Friday.
Write to Jack Denton at jack.dentondowjones.com
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