(Bloomberg) —
Bitcoin gained the most in more than three months as investors shows signs of renewed risk appetite following a volatile week across financial markets.
The largest cryptocurrency by market value jumped as much as 7.6% to $39,605, the most since Oct. 15. Ether climbed as much as 9%. Even SOL, the native currency of the Solana blockchain that has tumbled in the wake of the Wormhole project hack, surged more than 10%.
The top cryptocurrencies gained as strong earnings from Amazon.com Inc. bolstered confidence in technology stocks, which digital tokens have largely tracked over the past months.
Meanwhile, a report showed U.S. employers extended a hiring spree last month despite a record spike in Covid-19 infections and related business closures, with surging wages adding further pressure on the Federal Reserve to raise interest rates.
“The fact that AMZN’s earnings went the way of AAPL, MSFT and GOOGL — and not the way of FB — has given investors more confidence to reengage with the risk-on trade,” said Matt Maley, chief market strategist at Miller Tabak + Co., said.
The big cryptocurrencies have been largely trapped in a range over the past couple of weeks. Their struggle to break out came as growth stocks and other riskier assets faltered amid investor concern about the impact of imminent Fed rate hikes and a trend toward tighter monetary policy globally.
“Although there were concerns about accelerating monetary policy, there is now a sense among many capital markets that a 50 basis point rate hike is priced in given recent movements in equity markets,” said Hayden Hughes, chief executive officer at Alpha Impact, a trading social media platform. He also cited the restoration of $320 million from the Wormhole hack and oversold technical levels for bolstering the mood.
Read more: Meta Erases $251 Billion in Value, Biggest Wipeout in History
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