Bitcoin hit a two-week high on Saturday, continuing the previous session’s robust gains as cryptocurrencies benefited from a recovery in risk appetite and a recent surge in stock markets.
The cryptocurrency reached $41,983, up nearly 16% from Thursday’s lows and up 27% from an annual low of $32,950.72 on January 24.
Ether, the coin of Ethereum’s blockchain network, has scaled the $3,000 mark for the first time since January 21.
Friday’s 11% rise was the biggest one-day gain for bitcoin since mid-June and the first major rise after weeks of losses.
That was accompanied by a rally in U.S. stocks, highlighted by Amazon’s impressive earnings and Facebook’s dismal sales report.
These synchronized movements illustrate how bitcoin has become a mainstream investment product shaken by fluctuations in risk appetite.
“The current panic and volatility surrounding bitcoin is based on a fundamental misunderstanding of it as an asset class,” said Ed Hindi, chief investment officer of Swiss-based cryptocurrency hedgefund Tyr Capital. “When valuations on the Nasdaq fall, misguided institutional investors start liquidating bitcoin positions en-masse as if it were a tech stock,” he added.
For more information, read the original story in Reuters.