The world’s largest cryptocurrency briefly touched $70,170, but then retreated to around $68,000. Bitcoin saw a 9% increase over the past week.
|
Bitcoin roller coaster on 08/03
|
Bitcoin surged around the time the US stock market opened on March 8. With the introduction of US Bitcoin ETF funds, major developments in the Bitcoin market now tend to occur during regular trading hours, similar to the stock market.
The initial surge may partly be attributed to investors examining the US February 2024 job report, with hopes that higher unemployment rates and the adjustment to reduce new job numbers in December 2023 and January 2024 would pave the way for the Fed to cut interest rates this year.
However, the cryptocurrency market experienced extreme volatility this week. After setting a new record for the first time in over 2 years on March 5, Bitcoin promptly plummeted by 10%, dragging other cryptocurrencies and related stocks into the red. But this currency rebounded on the following day. Currently, Bitcoin’s volatility index is at its highest level in nearly a year, according to TradingView.
“It’s usually difficult to rally when touching previous peaks. The sharp decline of Bitcoin on March 5 was healthy and necessary for future stability,” shared Antoni Trenchev, Co-founder of the Nexo cryptocurrency exchange.
