:max_bytes(150000):strip_icc()/GettyImages-2247341573-fe6351e18275427896faff9466a485be.jpg "Bitcoin Has Regained Some Ground. Strategy’s Michael Saylor ‘Won’t Back Down’")
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Key Takeaways
- The leading cryptocurrency recently changed hands at around $88,000, recovering from recent lows near 82,000.
- The price of bitcoin has rebounded as investors have broadly been willing to take on more risk in recent sessions.
- Deutsche Bank analysts on Monday acknowledged the effect that concerns about hawkish Fed policy and risk-off sentiment have likely had on bitcoin’s price.
Bitcoin isn’t back—but it’s bouncing a bit.
The leading cryptocurrency recently changed hands at around $88,000, recovering from recent lows near $82,000 but a touch below 24-hour highs near $90,000. That recovery is welcome to backers of the coin, though it still marks a steep decline from October’s record highs above $124,000.
The price of bitcoin has recovered as investors have broadly been willing to take on more risk in recent sessions. Stocks climbed Monday as some high-flying shares associated with the AI trade powered higher following a downbeat post-Nvidia-earnings week. The rally extended into Tuesday, with major indexes rising amid increasing investor optimism, as measured by futures markets, that the Fed will cut rates at its December meeting.
Why This Matters to Investors
Bitcoin has lately been treated by investors as a volatile risk asset, with its price dropping from record highs. More recently, it’s bounced a bit, recovering some ground alongside AI stocks, which rose Monday. Analysts expect the volatility to persist.
The latest measure of buoyancy has reinvigorated some bitcoin backers. “I Won’t ₿ack Down,” Strategy (MSTR) Chairman Michael Saylor wrote Sunday on X, where he has lately shared portraits of himself in a variety of heroic and dramatic settings. (Today’s depiction had him as a fighter pilot, with the caption “Turn and ₿urn.”)
Still, Deutsche Bank analysts on Monday acknowledged the effect that concerns about hawkish Fed policy and risk-off sentiment have likely had on bitcoin’s price—but also wondered whether other factors, including profit taking, outflows from institutional investors, and concerns about stalled regulatory progress have been headwinds.
“While volatility remains inherent, these conditions indicate Bitcoin’s portfolio integration is being tested, and raises questions of whether this is a temporary correction or a more prolonged adjustment,” they wrote.
CoinMarketCap’s “Crypto Fear & Greed” index, meanwhile, remains decidedly downbeat.
More recently, some bullish signals have emerged. Some leading bitcoin ETFs are seeing inflows recover after posting declines earlier in the month, according to Farside Investors data. On Polymarket, there’s some optimism that bitcoin’s price could return to six-digit levels this year, though not much backing the notion that it can touch records again in 2025.
Bitcoin has fallen more than 20% nearly 20 times since 2012, Calamos Investments CEO John Koudounis said Monday on CNBC. “It’s volatile. Its going to continue to be volatile,” he said. “Having said that, it’s here to stay.”
