Cryptocurrencies were higher on Monday after recovering from a sharp drop in the previous week.
Bitcoin rose 1% to $19,457.00, according to Coin Metrics, while ether traded 1.5% higher at $1,317.01.
Prices have held steady since rebounding from a big drop that followed the release of the latest reading on the consumer price index, a key inflation gauge. Yuya Hasegawa, crypto market analyst at Japanese crypto exchange Bitbank, said the dip wasn’t deep enough to induce panic, however.
“It had been another tough week for the stock market until the CPI, so Thursday’s rebound will likely trigger unwinding of the recent risk off sentiment, which could have a positive effect on the price of bitcoin,” he said. “If the price recovers the $20,000 psychological level with a substantial trading volume in the next few days, bitcoin could test $23,000 next week.”
Despite a recent divergence in volatility, activity in bitcoin and ether trading remain closely tied to that of risk assets more broadly. Cryptocurrencies rose Monday along with the major stock indexes.
While October is typically a strong month for crypto trading, crypto has never been in such a strongly macro driven bear market and it remains to be seen how prices will fare by the end of the month.
