Bitcoin (BTC), the largest cryptocurrency by market capitalization, is staging a tentative recovery, rising alongside U.S. equities.
BTC has gained about 5% in the last 24 hours and risen back above the key support level of $90,000 U.S.
Bitcoin and other cryptocurrencies rose on Nov. 26 along with U.S. stocks, which posted strong gains on the last trading day before the Thanksgiving holiday in America.
U.S. markets are closed on Nov. 27 but crypto trades around the clock, 24 hours a day, seven days a week.
While some analysts have been quick to say that the worst might now be over for Bitcoin after it declined nearly 35% since mid-October, others aren’t so sure.
The rally seen in other cryptocurrencies such as Ethereum (ETH) and XRP (XRP) now appears to be faltering.
Ethereum is down about 1% over the past day and its price has again fallen back below the key level of $3,000 U.S.
The price of BTC could follow suit and also decline. Previous attempts at a rally by Bitcoin have failed in recent weeks.
Optimists say this time could be different as expectations for the U.S. Federal Reserve to lower interest rates at its Dec. 10 policy meeting rise among investors.
Lower interest rates are seen as a positive for risk assets such as cryptocurrencies.
At the same time, interest in stocks tied to the artificial intelligence (A.I.) trade appears to have been revived following another blockbuster earnings report from chipmaker Nvidia (NVDA).
