Bitcoin experienced a resurgence on Wednesday, reaching a two-week high as traders assess potential signs of recovery within the broader cryptocurrency market following a sustained downturn. The original cryptocurrency increased by as much as 2.6 per cent to approximately $US93,965, marking its highest intraday level since November 17. Ether also saw gains, rising by more than 4 per cent, as Ethereum undergoes a network upgrade named Fusaka, designed to enhance the blockchain’s speed and efficiency. Performance among smaller tokens was mixed.
The digital assets market remains unsteady after a significant selloff that began in early October, shortly after Bitcoin reached a record high of over $US126,000. Since then, the crypto market has seen over $US1 trillion in value erased. However, there are emerging signs of optimism as investors hope for a more sustained recovery.
Chris Beauchamp, UK chief market analyst at investment and trading platform IG, noted that Bitcoin fans are likely to be cautiously optimistic about the cryptocurrency’s rally, given numerous false starts in recent months. He added that the recovery in stock market risk appetite appears to be extending into the crypto space. IG is a global leader in online trading, providing access to opportunities in financial markets.
Beauchamp highlighted that last week’s bounce faltered at $93,000, and with the price surpassing this level in early trading, there is potential for a more sustained upward movement.
