The price of Bitcoin (BTC) has rallied to a one-month high of $71,800 U.S. as crude oil prices and global stock markets stabilize following war breaking out in the Middle East.
However, Bitcoin remains volatile. Its price stalled after nearing $72,000 U.S. in the past 24 hours and quickly retreated to $65,000 U.S. before rising again.
BTC is currently trading at $71,300 U.S. Reasons for the recovery are mixed and being hotly debated online.
While individual retail investors say the sudden rise in Bitcoin is due to its role as a safe-haven investment in times of crisis, professional analysts aren’t convinced.
Several analysts say that Bitcoin has been rising sporadically in recent days due to traders and institutional investors covering their short bets against the cryptocurrency.
Traders who have bet on Bitcoin’s price falling below $65,000 U.S. or $60,000 U.S. are being forced to buy the cryptocurrency as its price rises, say some analysts.
Regardless of the reasons, Bitcoin is not the only cryptocurrency that is marching higher. Ethereum (ETH) has gained 4% in the last 24 hours and is trading back above $2,000 U.S.
Dogecoin (DOGE), which is a meme coin, has gained more than 10% in the past day to trade at $0.09 U.S.
Analysts continue to urge caution with crypto, noting that Bitcoin and Ethereum’s implied volatility remains high and suggests the digital assets are prone to big price swings up or down.
