Bitcoin (BTC) has rallied 12% over the past 24 hours as its price climbs back to $60,000 U.S.
The largest cryptocurrency by market capitalization has recovered from the market rout on Aug. 5 alongside stocks.
Bitcoin’s gain over the last day was its single biggest move higher since Feb. 28, 2022, when prices rose 14%, according to market data.
In recent days, Bitcoin’s price had fallen as low as $49,000 U.S. as cryptocurrencies sold off in tandem with equities.
But now, the crypto market is rebounding with the market capitalization of the entire sector rising 11% to $2.11 trillion U.S. in the last 24 hours, the biggest one-day rise since Nov. 10, 2022.
The move higher comes as Wall Street's so called “fear gauge,” the VIX, fell to 23, offering positive signals for risk assets such as cryptocurrencies.
Stocks and crypto fell in recent days after the Bank of Japan raised interest rates, triggering an unwinding of the “Yen carry trade,” and amid concerns that the U.S. economy is headed for a recession.
Those fears have since been allayed and markets are again rising, with crypto analysts now eyeing a key support level for Bitcoin at $61,800 U.S.
However, in a note to clients, U.S. bank JPMorgan Chase (JPM) has urged caution with cryptocurrencies, saying most of the catalysts for digital assets are priced in.
The price of Bitcoin is up 37% this year and has risen 104% in the last 12 months.
