Bitcoin, the world’s largest cryptocurrency, jumped 3.36% to US$24,584.24 on Saturday, trading at US$798.93 above its previous closing price.
Ether, the coin linked to the Ethereum blockchain network, rose 0.61% to US$1,734.08 on Saturday, adding US$10.46 to its previous closing price.
The 3.36% rise in Bitcoin’s value means the cryptocurrency is now 39.7% from the year’s low of US$17,592.78 on June 18.
2022 is undoubtedly a tumultuous year for Bitcoin and other cryptocurrencies in general, with several factors attributed to the fall, including tighter monetary policy and investors selling their Bitcoin holdings in large numbers.
Alexander Cavendish, CEO of hedge fund Hedonova, explained in his statement on Bitcoin and crypto that the decline in crypto prices was caused by the rotation of money from retail to institutional investors.
“There’s a concept called ‘rotation’ in investments. For every asset class, money changes hands between retail and institutional investors, and this tend to happen in cycles or after a significant bull or bear run. What we’re looking at now is the rotation of money from retail investors to institutional investors. This is the reason why crypto prices are falling,” explained Cavendish.
The sources for this piece include an article in Reuters.