Bitcoin rallies toward $19,000

After biggest rout since pandemic.
Image: Luke MacGregor/Bloomberg

Bitcoin is clawing back most of its losses from its biggest rout since March, showing a resiliency in the cryptocurrency rally that has outperformed most major asset classes in 2020.

The most-traded digital coin rose over the weekend and added another 2% on Monday, reaching as high as $18,692. That’s near the $18,945 peak closing level reached last week, before prices started tumbling. A Bloomberg gauge of the biggest cryptocurrencies is up 12% from Friday.

Bitcoin’s plunge drew particular attention because it began just hours after the currency failed to set a new intraday record. Strategists at JPMorgan Chase & Co. said that while the recent tumble cleared some speculative “froth,” further declines remain possible.

Recouping sharp losses is not unusual for Bitcoin. The last time it dove 10% in one day, May 10, it took just four days to recover.

Bitcoin’s more-than-150% rally this year coincides with a steady flow of investments by institutions into the coin and into crypto infrastructure, from trading systems to custody. The latest was from Guggenheim Partners LLC, which said in a filing Friday it might invest up to 10% of its $5.3 billion Macro Opportunities Fund in a Bitcoin trust.

© 2020 Bloomberg

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