Bitcoin bounces back above $38,000 after weekend sell-off, shows data

Bitcoin was trading 12% higher, at $37,655 as of 10:58 am in New York

Bitcoin rebounded from its roller-coaster weekend, with prices on track for the biggest gain in more than three months. The cryptocurrency was trading 12 per cent higher around $37,655 as of 10:58 am in New York. It climbed as high as $38,683. Digital currencies have been gripped by volatility in the past two weeks, with Bitcoin prices plunging 18 per cent on Sunday.
 
Traders may be feeling more positive as the crypto industry holds one of its biggest conferences of the year. Federal Reserve Governor Lael Brainard noted at the Consensus conference that a big issue for central banks with regard to a digital currency is the impact on the financial system.  If people can keep digital dollars in a wallet that’s unrelated to a bank account, and easily use that wallet to make payments and transfers, that then undermines the commercial banking system, Brainard said. It could starve the banks of deposits, which of course are vital for making loans, she noted.

 
Bridgewater’s Ray Dalio said there is little incentive right now to hold dollars is low with no interest being paid. Eventually people will go to “almost anything else” — stocks, gold, bitcoin and real estate, he said. “Love or hate it, Bitcoin is impacting markets,” said Amy Wu Silverman, equity derivatives strategist at RBC Capital Markets, in a note Sunday. “What is Bitcoin—a currency? A 1-for-1 manifestation of Elon Musk’s thoughts? A ‘factor’ of meme+speculation+angry Gen Z’s? Like a tween Justin Bieber, you don’t know what bitcoin will be yet — but you have a feeling it will be big.”