Bitcoin posted its biggest gain in almost six weeks amid increased optimism that central banks will pause interest-rate hikes that had helped to dent the appeal of cryptocurrencies.
The original digital currency rose as much as 3.6% to $26,794 on Wednesday, the biggest one-day jump since July 13. The increase comes on the heels of Bitcoin’s worst week since November and crypto exchange FTX’s collapse.
Smaller tokens such as Cardano, Solana and Polygon gained more. The so-called altcoins tend to be more volatile than Bitcoin, which accounts for about half the $1 trillion crypto market’s value.
The rebound in Bitcoin came as stocks climbed the most since June and bond yields fell. Economic reports in both the US and Europe fueled bets that central banks will pause rate hikes to prevent a recession.
