By market value, Bitcoin, the most valuable cryptocurrency, increased by more than 7% to $20,796. This is a two-week high. The second-largest cryptocurrency, ether, increased 5% to reach a two-week high of $1,717. On Wednesday, bitcoin had dropped as low as $18,540.
Market participants claimed that there was no specific catalyst for the gains other than the general optimism that was evident on Friday across all asset classes, driven by a decline in the safe-haven dollar and a rise in Chinese stocks.
Bitcoin could record its best week in about a month if the cryptocurrencies can maintain their gains through Sunday’s close. This would be the second consecutive weekly rise for Bitcoin.
The upcoming “merge” software upgrade, which is anticipated to occur between September 10 and 20, may increase the volatility of Ether over the weekend.
The change is expected to drastically alter how transactions are handled while also reducing energy use. While the upgrade is taking place, some exchanges intend to pause deposits and withdrawals.
