Cryptocurrency prices have shrugged off their general market jitters, with the No. 1 digital currency flirting with $9,000, a level bitcoin touched over the weekend but has seen since early February.
Is the bitcoin selloff done?
While a newfound degree of volatility has taken hold in the stock market, cryptocurrency prices have been mostly grinding higher. After dipping below $6,000, bitcoin BTCUSD, -3.57% has reversed course, climbing more than 50%, with market participants wondering if a bottom in the closely followed virtual asset has been put in.
Recently, market technicians, who key in on chart moves to spot trends in an asset, have said that bitcoin might have hit a so-called oversold level when it traded below $6,000 last week. The chartwatchers see similar oversold conditions to those of Sept 14, 2017, when the so-called relative strength index (RSI), a measure of momentum in an asset, signaled that the cyber unit might have put in a bottom. That nadir was followed by bitcoin rallying to an all-time peak in late December at nearly $20,000 (see chart above).
Howard Wang, co-founder of Convoy Investments, who called the digital currency the biggest bubble in human history, has described recent moves in bitcoin, including its turn higher, resembles a classic bubble. “I wouldn’t rush to declare this moment the end of the Bitcoin bubble,” Wang said in a Monday research note.
J.P. Morgan adopt an upbeat stance
The uptrend for bitcoin, and cryptocurrencies more generally, comes after researchers at J.P. Morgan Chase & Co. JPM, +1.54% released an in-depth report on digital assets, painting a generally upbeat outlook for investors. J.P. Morgan’s CEO Jamie Dimon has famously referred to bitcoin as a “fraud,” though he has expressed some regret about publicly airing that view recently.
IMF boss says regulation is ‘inevitable’
International Monetary Fund boss, Christine Lagarde, said international regulation around cryptocurrencies is “inevitable,” during an interview with CNNMoney on Sunday.
“It’s clearly a domain where we need international regulation and proper supervision,” he told the network.