Hitting its highest price level in nine months, it capped a week’s gains on Friday, although all crypto-related products were not immune to the market turmoil.
At 5 PM on Friday, bitcoin was trading up 8.46% at $26,791.16, its highest level since June at 5 PM. (It was trading at $27,460.70 early Saturday.) Ethereum and Dogecoin were up 5.1% and 7%, respectively. All three have traded higher on each day of the past week. Similarly, crypto exchange platforms
(ticker: COIN) is up more than 37% over the past five days.
This may sound paradoxical, given that the banking crisis was set off by turmoil at Silicon Valley Bank and other crypto-friendly banks. Closed their doors.
Indeed, many investors are nervous: as Baron’s Reportedly, investors last week raised $255 million from investment products holding digital assets. There were outflows from both bullish and bearish funds, meaning some may think the worst of crypto’s punishment is over.
There was certainly a lot of pain earlier this month, as the demise of Silvergate Bank preceded that of SVB; In this sense, investors may find that cryptos are already significantly undervalued. Despite this last week’s rally, bitcoin is still down nearly 40% over the past year and is down more than 63% from its all-time high in November 2021, when it peaked at $67,802.30.
Similarly, ongoing hopes for more accommodative monetary policy lift crypto, which thrived under the low interest rate regime that dominated the past decade. other betting Investment have also flourished, while on the other end of the spectrum, Big Tech companies have emerged as unlikely defensive plays amid the recent market selloff.
Nonetheless, crypto prices are nothing if not volatile. Last week’s big gains could be quickly forgotten if sentiment turns sour.
Write to Teresa Rivas at [email protected]