Bitcoin is back, apparently. After months in the doldrums, the No. 1 digital currency surged Tuesday and is attempting to hold gains in Wednesday trading.
As recently as Saturday, interest in bitcoin was at an eight-month low, with 24-hour volume falling below $3 billion for the first time since Nov. 7. However, after Tuesday’s surge, which saw the world’s biggest digital currency climb more than 10%, volume more than doubled Saturday’s number and reached the highest level since May 24.
According to Coinmarketcap, $5.96 billion of bitcoin changed hands on Tuesday alone.
Bitcoin trading volume
The price of a single bitcoin BTCUSD, +0.06% last changed hands at $7,336.14 on Wednesday, up 0.3% since Tuesday’s price at 5 p.m. on the crypto exchange Kraken.
Read: Brutal bear market for bitcoin doesn’t stop record inflows to this digital asset firm
Hedge-fund manager: $40,000 possible
On the back of Tuesday’s rally, Marc Larsy, the Moroccan-born hedge-fund manager, told CNBC that the price of the No. 1 digital currency would rise as more markets open their doors to digital assets, adding that he has 1% of his personal money invested in bitcoin.
When asked for a price prediction, Larsy said bitcoin could reach a level between $20,000 and $40,000.
Larsy, the co-founder of Avenue Capital Group and owner of the Milwaukee Bucks of the NBA, said user adoption would fuel a rally that could see investors secure healthy returns. “As it gets more into the mainstream and as more markets end up allowing it to trade … to me that’s more of the bet,” Larsy told CNBC’s “Squawk Box.”
Altcoins surrender early gains
After starting the day in the green, altcoins, coins alternative to bitcoin have slid into the red late Wednesday. Bitcoin Cash BCHUSD, -0.28% was down 1.8% at $827.70, Litecoin LTCUSD, -0.40% had lost 3% to $86.19 and Ripple’s XRP coin XRPUSD, +0.61% was trading at 48 cents, down 5.7%, and Ether ETHUSD, +0.30% was down 5.4% at $472.96.
Futures closed Wednesday with moderate gains. The Cboe Global Markets Inc. for July XBTN8, +0.31% finished up 0.7% at $7,385 and the CME Inc. The July contract BTCN8, +0.34% closed at $7,395, up 1.2%.
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