The Bitcoin price (BTC/USD) has launched another attempt at sustaining a meaningful rally above the $8,000 mark, after failing to defend that price level during yesterday’s session.
The digital currency performed strongly for the better part of the Wednesday session, riding a wave of optimism that hit the market following the recent US Senate cryptocurrency hearing. However, the rally ran out of steam toward the end of the session and the Bitcoin price experienced a pullback that erased all of its earlier gains. The cryptocurrency eventually finished the day at $7,621.30, below the opening level of $7,755.49.
However, the cryptocurrency saw renewed momentum at the start of today’s session, which allowed it to swiftly return above the $8,000 mark. At the time of writing, the Bitcoin price was hovering around $8,400.
In other cryptocurrency news, Christopher Harvey, head of equity strategy at Wells Fargo, yesterday argued that the recent crash hinted at a possible correlation between cryptocurrencies and the wider financial market.
"On Monday what we saw is all risk products sell off," Harvey said, as quoted by CNBC.
American stock markets tanked on Monday, with the Dow Jones Industrial Average plunging 1,175 points by the end of the US session. According to Harvey, such a hit on the market can cause investors to panic and start selling Bitcoin, as well.
"It sometimes adds fuel to the fire," Harvey said.
The Wells Fargo strategist also said that the best gauge for predicting future market movement and the price of cryptocurrency is by assessing the risk.
“"We think of it more as what we have to watch out for, what we have to ... tell our clients to be careful of," Harvey said. "We don't make a call whether it's going to go up or down but that it's a risk in the marketplace, and it's really far out on the risk spectrum.”
In today’s trading, the Bitcoin price stood at $8,445.20, as of 10:23 GMT. The cryptocurrency has gained 5.5% in the past 24 hours, according to data from digital currency tracker Coinmarketcap.
For further information on how to buy and trade Bitcoin, see our comprehensive Bitcoin guide.