Rising market risk appetite helps Bitcoin return above $40,000

Bitcoin posted its biggest gain in more than three months as investor risk appetite showed signs of picking up after a tumultuous week in financial markets.

The largest cryptocurrency by market value rose 9.8% to $40,573, the largest gain since October 15, and stood above $40,000 for the first time in more than two weeks. Ethereum was up 11% at one point.

Major cryptocurrencies began to rise in overnight trading after Amazon's strong results boosted investor confidence in technology stocks, which cryptocurrencies have largely moved in lockstep with over the past few months.

Meanwhile, despite a record spike in Covid-19 infections in January and the closure of some businesses, a report showed that U.S. employers continued to hire aggressively and wages rose sharply, which also gave the Federal Reserve further pressure to raise interest rates.

“Amazon’s results go the way of Apple, Microsoft and Google — not Facebook, giving investors more confidence to get back into the risk-on-risk trade,” Miller Tabak Co. Chief Market Strategist Matt Maley said.

Stephane Ouelette, CEO and co-founder of institutional cryptocurrency platform FRNT Financial, said that Bitcoin appears to be consolidating near its 200-day moving average similar to stocks. Ouelette believes that Bitcoin’s performance over the past two days has been correlated with Facebook’s decline and Amazon’s rise on Friday.

This article comes from the financial world