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Bitcoin, the first and largest cryptocurrency by market capitalization rose above $71,000 on Wednesday, gaining more than 9% in 24 hours and leading broad advances in major cryptocurrencies.
Crypto markets rebounded on Wednesday, recovering from a prior sell-off and shaking off earlier pain in other asset classes.
Bitcoin rallied nearly 9% to reach $71,928, its highest value in nearly a month. It gave up some of its gains, trading up 5.62% daily to $71,343 at press time.
The leading cryptocurrency had weathered a rocky few days since Saturday, at one point dropping as low as $63,019 that day. Since then, investors have largely rallied around digital assets, with spot Bitcoin exchange-traded funds in the U.S. attracting more than $680 million in inflows on Monday and Tuesday, Bloomberg reported.
Bitcoin's rise past $71,000 has attracted reactions within and outside the crypto industry. Tether CEO Paolo Ardoino commented on the Bitcoin price jump: "Bitcoin woke up today and chose green."
Peter Schiff questions BTC's rise
In his usual characteristic manner, longtime cryptocurrency critic Peter Schiff questions Bitcoin's rise, calling it a "head fake."
"Bitcoin is trading above $71,000. This is a head fake. Don't look a gift horse in the mouth. Sell your Bitcoin now and buy gold or silver. You can thank me later," Schiff wrote.
Schiff, a gold bug, has often poured cold water on Bitcoin advances, and at one time claimed Bitcoin could collapse and go down to $20,000, citing the Bitcoin gold divergence to continue.
Crypto advocates have often compared Bitcoin to gold, seeing it as a digital safe haven that investors might turn to in volatile times. That narrative failed to stick as Bitcoin fell in recent months while gold rallied. Bitcoin has, however, outperformed gold in recent days, rising 9% since Friday.
Despite the ongoing price rebound, crypto markets remain on edge, with Bitcoin still down about 43% below its October all-time high following a months-long sell-off. This backdrop has put Bitcoin in a unique position, with traders now watching the next move.
Dan Burgin
Vladislav Sopov
