The world’s largest cryptocurrency briefly touched $70,170USD before falling back to around $68,000USD. Bitcoin has increased by 9% in the past week.
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Bitcoin Roller Coaster on 08/03
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Bitcoin surged around the time the US stock market opened on March 8th. With the introduction of Bitcoin ETFs in the US, major developments in the Bitcoin market now commonly occur during regular trading hours, similar to the stock market.
The initial surge may partly come from investors considering the US February 2024 jobs report, with hopes that higher unemployment rates and downward adjustments to the number of new jobs in December 2023 and January 2024 will pave the way for an interest rate cut by the Fed this year.
However, cryptocurrency trading has been extremely volatile this week. After reaching a new all-time high for the first time in over 2 years on March 5th, Bitcoin immediately plunged by 10%, dragging other cryptocurrencies and related stocks into the red. But the currency has recovered the following day. Currently, Bitcoin’s volatility index is at its highest level in nearly a year, according to TradingView.
“It’s usually tough to make a comeback after hitting an old peak. Bitcoin’s sharp decline on March 5th was necessary to build stronger momentum in the future,” shared Antoni Trenchev, Co-Founder of the Nexo cryptocurrency exchange.
