The most widely used cryptocurrency managed to erase the losses it suffered in the earlier days in the second half. Over the weekend, Bitcoin even traded for more than $21,500.
From Wednesday to Sunday, bitcoin firmed more than ten percent for a few dozen minutes to get above the $21,500 level. In the second half of the week, it erased the losses it had made during Monday and Tuesday. Bitcoin ended the week less than a percent stronger than at the beginning of the week.
Pessimistic investors
However, investors remain pessimistic about where the value of the oldest and most popular cryptocurrency will go. “The market is being affected by news of companies going bust in the cryptocurrency market,” Craig Erlam, an analyst at Oanda, told CoinDesk.com. According to him, the next downturn may occur when Bitcoin weakens below a certain psychological threshold, which is likely to be below $20,000.
Stock market downturn
Bitcoin and other cryptocurrencies have been in the drag of stock markets, which have plunged more than 20 percent in the U.S. alone since the start of the year. Fears of the US central bank tightening monetary policy are to blame. This has resulted in a rise in the profitability of less risky assets, where many investors are “fleeing” Bitcoin.
