Andrew Brenner, head of international fixed income at National Alliance Securities, said on Sunday that Bitcoin’s rise was likely the result of retail investors buying the digital currency over the weekend, when few professional traders work.
“Some bulls think it’s a good time to get in because Bitcoin has fallen to a level that shows some near-term attractiveness,” Brenner said. He added that Bitcoin and other digital currencies remain extremely volatile.
The sell-off in the crypto market coincided with a tumble in equities, with US equities suffering their biggest weekly percentage decline in two years on fears of rising interest rates and the growing likelihood of a recession.
Brenner said digital currencies were not a good investment at a time when the US Federal Reserve is tightening the supply of dollars by ending its expansive monetary policy.
“As long as the dollar continues to show strength, digital currencies are not where you want to be,” Brenner said.
– CNN’s Rob McLean contributed to this report
