Bitcoin rose as much as 10% on Monday, as investors used last week’s slide as a buying opportunity.
The digital asset was last trading near $53,000 as of 03:00 a.m. ET, but had earlier dropped as low as $47,000 in early Asian trade.
Some analysts said crypto investors view volatility as a good chance to rack up profits. Real Vision co-founder and former hedge-fund boss Raoul Pal said Sunday: “Corrections in a bull market are opportunities and not threats.”
Bitcoin had tumbled to as low as $47,953 last week after JPMorgan warned there could be further weakness for the cryptocurrency due to a decline in buying momentum. Reports that President Joe Biden plans to impose higher taxes on the rich also propelled a wider drop in bitcoin. Investors in Turkey were dealt more pain after the collapse of two crypto exchanges, stoking concern that cryptocurrencies may be in a bubble.
“My feeling is that the market is long and wrong above $60,000 of fiat currency, backed by tax-payer revenue, US dollars,” Jeffrey Halley, a senior market analyst at OANDA, said, adding he expects the price to fall to around $42,000 based on technical analysis.
Popular crypto influencer and Tesla billionaire Elon Musk posted yet another cryptic reference to the market. He tweeted over the weekend “What does the future hodl?” – using a term crypto investors understand standing for “hold on for dear life” with respect to their holdings.
Bitcoin enthusiasts will be paying attention to Tesla’s first-quarter results, set to be published after the market close on Monday, for any insight into crypto in general, or the company’s bitcoin holdings.