(Bloomberg) — Bitcoin posted its biggest gain in two weeks, climbing close to $31,000 as China’s easing of Covid curbs stoked investor enthusiasm for riskier assets.
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The largest cryptocurrency advanced as much as 5.8% to $30,858.53 on Monday morning in London. Ether and smaller tokens like Avalanche, which got pummeled last week even as Bitcoin held relatively steady, also gained. Stocks advanced in Asia and Europe after the S&P 500 rallied on Friday.
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“Markets are long overdue for a relief rally,” said Hayden Hughes, chief executive of social media trading platform Alpha Impact. “Bitcoin just went through eight consecutive weeks in red territory and got technically oversold to levels we traditionally only see at the bottom of bear markets.”
Cryptocurrencies re-established their tendency to trade in tandem with equities after falling on Friday even as the S&P 500 capped a weekly advance of 6.6%. That sparked concerns that investors would continue dumping digital tokens even amid a revival in demand for other risk assets.
Ether gained as much as 6.6% on Monday while Avalanche and Solana were up 9% and 6%, respectively. Luna, the new token distributed to investors who saw the value of their cryptocurrencies tied to the Terra blockchain wiped out earlier this month, fell 1.2% according to CoinGecko, making it an outlier among altcoins.
“On Alpha Impact, we’re seeing heavy buying of Ether and several altcoins, and these patterns mirror what we saw in the July 2021 bear market bottom and the January 2022 local bottom,” Hughes said.
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