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Bitcoin jumps 7% and retakes $70,000 to start the week
- Bitcoin was in correction mode last week, after hitting an all-time high of $73,797.68 on March 14.
- Despite its setbacks, Bitcoin is on track to end March on a winning note.
Nicolas Économou | Nuphoto | Getty Images
Bitcoin reached the $70,000 level early in the last week of March.
The price of the flagship cryptocurrency was last up 7.8% at $70,995.48, according to Coin Metrics. It briefly reached $71,239.31 late in the afternoon as the stock market closed. Ether jumped 7.4% to $3,634.80. Most other cryptocurrencies have also ridden the Bitcoin wave.
MicroStrategywhich trades as a proxy for the price of bitcoin, jumped 21%, while Coinbase advanced by 9%. The mining sector has also benefited from Bitcoin, with Riot platforms up 9%, CleanSpark up 19% and Crypto mining gaining 13%.
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Bitcoin jumps to start the week
Bitcoin was in correction mode last week, after hitting an all-time high of $73,797.68 on March 14. slipped to around $60,800. Alex Thorn, head of enterprise-wide research at Galaxy Digital, said such declines are “well within the norm of historical short-term bull market corrections.”
The reason for Monday’s sharp rise was unclear, but the cryptocurrency’s price action in March was characterized by new highs followed by healthy pullbacks. Thorn suggested that investors were taking a break from selling shares of Bitcoin exchange-traded funds.
“The record GBTC “Capital outflows over the past two weeks, likely caused by the Genesis and Gemini liquidations, contributed to weak spot prices, but several technical indicators indicated seller exhaustion,” Thorn said.
Sam Callahan, principal analyst at Bitcoin services company Swan Bitcoin, said this was likely related to the upcoming messages. from the Federal Reserve last week.
“Fed officials made clear last week that they plan to both cut rates and reduce the pace of its quantitative tightening program this year,” he said. “Such actions will improve liquidity conditions, acting as a positive catalyst for asset prices. Bitcoin functions as a barometer of liquidity conditions and has responded favorably to the Fed’s message that monetary policy will likely ease in the near future.”
Despite its setbacks, Bitcoin is on track to end March on a winning note. It gained 14% for the month and 66% so far for the first quarter.