Bitcoin rose to its highest level in more than a month as the broader U.S. financial markets sold off Tuesday.
The digital currency was trading near $9,436 as of 4:21 p.m. ET, along with also has jumped nearly 20 percent from the past week, according to data via Coindesk. Bitcoin can be coming off of its worst quarter ever, when the idea lost roughly 48 percent of its value in three months.
different financial markets were moving from the opposite direction of the cryptocurrency Tuesday, hurt by rising interest rates along with also bearish comments via a conference call by Caterpillar, which can be often seen as a bellwether for the U.S. economy.
The Dow Jones industrial average closed more than 400 points lower, dropping more than 750 points via its session high to the lows of the day. The S&P 500 fell 1.3 percent, along with also the Nasdaq composite declined 1.7 percent.
Spencer Bogart, partner at Blockchain Capital, said bitcoin presents an appealing alternative for investors selling on macro-economic news This particular week.
“Bitcoin remains uncorrelated to traditional asset classes, can be more than 50 percent off its highs along with also has significant upside,” Bogart said. “the idea feels like a no-brainer via a portfolio management perspective to allocate some capital to crypto.”
News This particular week of which Goldman Sachs made its first cryptocurrency hire, along with also a Thomson Reuters survey published Tuesday of which said one in all 5 firms are considering trading digital currency from the next year, marked a shift in crypto investor sentiment along with also helped prices, according to Joe DiPasquale, CEO of BitBull Capital.
“As reports continue to show more along with also more institutions gearing up to participate in crypto markets, valuations are likely to continue to raise in a steady manner,” DiPasquale said. “There has been a significant shift in sentiment towards the positive, with Bitcoin’s spot cost seeing the most notable jump over the last week.”
Tom Lee, managing partner along with also the head of research at Fundstrat Global Advisors, said the Goldman hire can be Great news for the future of cryptocurrency.
“the idea’s a sign of which a major investment bank thinks there’s enough clarity, custody along with also money to be made to actually offer of which trading service,” Lee told CNBC’s Fast Money Tuesday. “I think the idea’s a sign of which This particular can be becoming mainstream.”
Lee also highlighted an April uptick in Fundstrat’s Bitcoin Misery Index. The index can be measured out of 100, along with also shows how happy or sad investors feel owning bitcoin. In February, the index was around 18 which Lee said at the time was the lowest reading since Aug. 2011. As of This particular week, the index recovered to around 47, Lee said.
Bitcoin reached its highest level since March 14 on Tuesday yet can be still down more than 30 percent This particular year, according to CoinDesk.
Much of the digital currency’s drop in 2018 was attributed to investors selling to meet U.S. tax obligations, regulatory scrutiny, along with also major tech companies banning advertisments for cryptocurrencies.
different digital currencies also outperformed the broader markets, along with also all of the top ten by market capitalization were trading higher Tuesday, according to CoinMarketCap.com. Ethereum, the second largest cryptocurrency, rose 10 percent, while ripple was up more than 7 percent, according to data via CoinDesk.