Bitcoin Pares jumps amid falling buying on hopes for a better second half

(Bloomberg) – Bitcoin dip buyers are hoping things won’t get much worse for cryptocurrencies in the rest of this year judging by the virtual coin’s latest surge.

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On Friday, the largest digital token rose 11.3% in Asia, briefly approaching the $21,000 level. The rise cooled to 5% from 1 p.m. Tokyo, leaving Bitcoin at around $19,660.

Some optimism was also evident for coins such as Ether, Solana, and Avalanche, but the crypto universe was off session highs as a crisis of risk aversion swept across global markets.

Bitcoin hovered around the $20,000 mark after falling 57% this year. The retreat has become emblematic of depressed investor spirits as liquidity evaporates amid tighter monetary policy to fight inflation.

Outrageous crypto fluctuations have rocked traditional assets at times this year. This time around, the latest jump up failed to ease the gloom surrounding US equity futures and Asian stocks, which remained in the red.

Bitcoin “could be vulnerable to another ugly fall that could have many traders fearing a drop towards the $10,000 area” if the turmoil on Wall Street continues into the third quarter, wrote Edward Moya, senior market analyst at Oanda Corp., in a note. .

Such risks do not deter El Salvador: its president Nayib Bukele said on Twitter that the nation had bought the dip again, this time 80 Bitcoins at a price of $19,000 each.

Earlier this week, Michael Saylor’s Bitcoin-backed tech company MicroStrategy Inc. said in a filing that it purchased another 480 coins worth around $10 million at the height of the swoon. of crypto.

(Updates with El Salvador buying the dip in the seventh paragraph.)

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