Bitcoin bounced above $22,000, hitting its highest level in more than a month as the cryptocurrency market held out hope that the contagion and shakeout over the past few weeks is nearing its end.
The world’s largest cryptocurrency ended Monday at $21,610.59, up 2.76%, according to CoinMetrics. Bitcoin hit a high of $22,757.36, the highest level since June 16.
Other cryptocurrencies also bounced, with ether up 8.94% at $1,466 by the end of the day Monday.
The bullish sentiment was helped by a rally in stock markets in Europe and Asia. U.S. stock futures were also higher. Cryptocurrencies, in particularly bitcoin, has been closely correlated with equity market trade. Often, a rise in stocks will also lift sentiment in the crypto market.
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But investors are also watching whether the carnage over the last few weeks, which has seen bitcoin near 70% off its all-time high that was hit in November and billions of dollars wiped off the market, might be over.
The price crash has brought the downfall of several high-profile companies in the space, most notably hedge fund Three Arrows Capital and crypto lender Celsius, both of which have filed for bankruptcy.
These collapses have caused contagion across the industry and seen other associated companies come under pressure.
