Bitcoin is rebounding strongly after falling below $50,000 U.S. last week, its lowest level in nearly two months.
The largest cryptocurrency was up to $52,700 U.S. in London trading Monday (April 26), its biggest gain since February 8. At one point Bitcoin was up as much as 10%.
The digital coin had been in a two-week slump after reaching a record on April 14. Technical warnings and the collapse of two cryptocurrency exchanges in Turkey last week had depressed Bitcoin sentiment and raised fears about a growing bubble in cryptocurrencies.
Monday’s move higher shows that some investors are buying the dip in Bitcoin after it fell below its 100-day moving average.
Some cryptocurrency-linked stocks were rising along with Bitcoin. Monex Group gained 7.1%, while Remixpoint increased 7% and Ceres added 6.1% in trading Monday.
Bitcoin has done well over the medium-term, retaining a gain of about 80% year-to-date as big-name investors endorse it and commercial banks such as Goldman Sachs (NYSE:GS) and Bank of New York Mellon (NYSE:BK) increase their offerings of cryptocurrencies.
