(Bloomberg) — Bitcoin rallied back Monday as investors took advantage of the lowest levels in seven weeks to pile back in.
The largest cryptocurrency rose as much as 13% to above $54,000, the biggest intraday gain since early February.
The move comes as JPMorgan Chase & Co. is preparing to introduce an actively managed Bitcoin fund to some clients as soon as this summer, Coindesk reported, citing unidentified people familiar with the matter. The rebound reverses a two-week slump that had pushed Bitcoin below its 100-day moving average amid technical warnings from Wall Street and fears of a growing crypto bubble.
Some pinned Monday’s move on a tweet Saturday from billionaire Elon Musk, who in the past has affected prices with his comments on the social platform.
In a potential reference to cryptocurrencies, the Tesla Inc. founder asked “What does the future hodl?”, using a term often seen as meaning “hold on for dear life” that supporters use to refer to buying and holding their digital assets.
After markets closed in New York on Monday, Musk’s Tesla Inc. quarterly results revealed that it spent $1.2 billion on Bitcoin in the first quarter and made $101 million selling it during that period. Musk had disclosed the crypto investment in February and the announcement subsequently helped fuel a red-hot rally for the digital asset.
Cryptocurrency-exposed stocks also rose. Monex Group Inc. gained 7.1%, while Remixpoint Inc. increased 7% and Ceres Inc. added 6.1%. In the U.S., Coinbase Global Inc. gained 4.4%, while Riot Blockchain Inc. jumped 6.3%.
Bitcoin has retained a gain of about 80% year-to-date as big-name investors endorse it and institutions from Goldman Sachs Group Inc. to Bank of New York Mellon advance their offerings around cryptocurrencies. JPMorgan’s John Normand reiterated in a note Friday that Bitcoin’s ascent has been steeper than any other financial innovation or bubble of the past 50 years.
“Crypto bulls breathed a sigh of relief as last week’s deep rout across the space failed to extend,” Steen Jakobsen, chief investment officer at Saxo Bank, wrote in a note. However, “it has quite a wall to climb to fully neutralize the recent selloff
(Updates to add Tesla’s Bitcoin sale in sixth paragraph)
For more articles like this, please visit us at bloomberg.com
Subscribe now to stay ahead with the most trusted business news source.
©2021 Bloomberg L.P.