Bitcoin rose over the weekend as cryptocurrency investors continue to look for a bottom following a rough six months of selling.
The largest cryptocurrency by market cap was higher by 4.6 percent Monday, according to Coin Metrics. Ether advanced nearly 5 percent.
Crypto continues to move in tandem with stocks. Futures tied to major stock averages were all higher on Monday morning too. Investors have held their breath while watching prices across risk assets move higher, uncertain if the moves are temporary or if a more permanent reversal is finally here.
“Token prices fell 27 percent in May, following a 20 percent decline in April,” said Kenneth Worthington, a JPMorgan research analyst, in a note Monday. “The already challenged April environment was exacerbated in May by the collapse of the UST algorithmic stablecoin that drove a combination of forced selling and uncertainty to negatively impact the broader cryptoecosystem. While trading volume appears somewhat higher in May from a depressed April, nearly all the other gauges of growth declined this past month.”
Last week bitcoin and ether both turned green for their first positive week in nine, according to Coin Metrics. That was the longest running losing streak ever for the cryptocurrencies.
Last month, another JPMorgan strategist, London-based Nikolaos Panigirtzoglou, said he sees about 30 percent upside for bitcoin after the recent washout.
Valkyrie Investments chief investment officer Steve McClurg said it could fall further first, by another 30 percent.