(Bloomberg) — Cryptocurrencies surged, with Bitcoin posting its biggest one-day gain in more than 16 months, with investors returning to riskier assets across financial markets.
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The largest digital currency rose as much as 8.6% to over $59,800 while Ether, the second-largest token, was at one point up almost 10%. Both tokens are still below their level a week ago, following a decline on Monday that was the market’s steepest since the days of FTX’s collapse in 2022.
“It’s a combination of traditional markets and also after a wipeout in crypto,” said Zaheer Ebtikar, founder of crypto fund Split Capital. “All the forced sellers are gone.”
Stocks staged a solid rebound and bonds fell after the latest US labor-market reading helped ease fears about a more pronounced slowdown in the world’s largest economy.
Cryptocurrencies initially clawed back some of those losses on Tuesday but that bounceback quickly petered out.
Meanwhile, a federal judge on Wednesday ordered Ripple Labs to pay a civil penalty of $125 million, a fraction of the almost $2 billion the US Securities and Exchange Commission had sought. The regulator sued Ripple in 2020, accusing the company of raising money by selling the XRP token without registering it as a security. XRP rose as much as 25% after the ruling.
“XRP bounced back to its historical support line,” pushing the cryptocurrency back above weekly moving averages, said Alex Kuptsikevich, a senior market analyst at FxPro.
–With assistance from Emily Nicolle.
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