The Bitcoin price (BTC/USD) has hit its highest level in nearly seven weeks after experiencing strong gains in yesterday’s trading session.
The original cryptocurrency performed strongly on Tuesday, especially in the final hours of the session, when its price hit an intraday high of $9,732.61. After reaching that level, which was the digital coin’s highest price level since March 8, Bitcoin pulled back slightly to close the session at $9,697.50.
The situation has changed in today’s trading, however, as the Bitcoin rally appears to have run out of steam. While the coin reached a fresh high of $9,745.32 in the early hours of the session, it has since retreated to lower levels. According to data from cryptocurrency tracker Coinmarketcap, the Bitcoin price is currently hovering around $9,320.
Bitcoin’s rally on Tuesday came as the major US equity markets suffered a large sell-off. The Dow Jones Industrial Average closed the yesterday session 1.7%, or more than 400 points, lower, while the S&P 500 and the Nasdaq Composite Index both declined by more than 1%.
"Bitcoin remains uncorrelated to traditional asset classes, is more than 50 percent off its highs and has significant upside," Spencer Bogart, partner at Blockchain Capital, explained why the cryptocurrency presents an appealing alternative for investors. "It feels like a no-brainer from a portfolio management perspective to allocate some capital to crypto," he said, as quoted by CNBC.
A survey, published by Thomson Reuters yesterday showed that 20% of financial firms are considering trading digital tokens in the next 12 months, which likely contributed to Bitcoin’s performance. Meanwhile, the market sentiment was additionally bolstered by the news that Goldman Sachs hired its first cryptocurrency trader. The US investment banking giant appointed Justin Schmidt, a former trader, to be the first head of digital asset markets in its securities division.
In today’s trading, the Bitcoin price stood at $9,327.46, as of 10:07 BST. The cryptocurrency has gained 0.95% in the past 24 hours. For a list of Bitcoin exchanges see Bestbitcoinexchange.io.
For further information on how to buy and trade Bitcoin, see our comprehensive Bitcoin guide.