Bitcoin rebounds from lows, edges closer to fresh record

Bitcoin clawed back most of its losses amid a broader easing of risk-on sentiment in financial markets.

FILE PHOTO: A representation of virtual currency Bitcoin is seen in front of a stock graph in this illustration taken January 8, 2021. REUTERS/Dado Ruvic/File Photo/File Photo (REUTERS)

Bitcoin clawed back most of its losses amid a broader easing of risk-on sentiment in financial markets.

The world's largest cryptocurrency slumped as much as 4.4% Friday before paring losses to trade at $57,550 at 12:17 p.m. in New York. It hit an all-time high of $58,350 on Feb. 21. The Bloomberg Galaxy Crypto Index, tracking Bitcoin, Ether and three other cryptocurrencies, which slipped as much as 4.9% earlier, also recovered some declines.

“The bears' last stand is the $57,800 level, and it looks like we might be seeing that battle play out before the week is over,” said Matt Blom, global head of sales trading at EQUOS. 

“On the downside, continued selling above $57,000 will see us slip back toward $56,620 and potentially $55,000. Any move below here will be supported by dip-buying bulls and dip-buying bears alike.”

The digital asset is up nearly tenfold in the past year as optimism over rising institutional demand pushed prices to record highs. While some say that Bitcoin is a stimulus-fueled bubble likely to burst, industry participants argue that institutional adoption will prevent Bitcoin from plummeting from its highs as was witnessed in 2017-2018.