On Tuesday, the number one cryptocurrency showed the largest monthly growth, exceeding $49 thousand. It was the first significant increase caused by overall growth in appetite for risk assets.
The largest cryptocurrency in terms of market cap jumped by 56% to $49,331 during the US trade. In the last five weeks, bitcoin lost more than 30%. In November, the asset reached its record high of almost $69,000.
According to Bloomberg Intelligence, the number of crypto-tracking investment vehicles worldwide more than doubled to 80 from just 35 at the end of 2020. Assets surged to $63 billion from $24 billion at the beginning of the year.
"The (earlier) 2% Bitcoin future gain on the day the S&P 500 dropped 1% solidifies the recent crypto low around $45,000 as pivotal support," Bloomberg Intelligence analyst McGlone wrote in a research note.
During the recent weeks, markets have been exerting significant pressure on investors. The fact is that traders are evaluating economic risks caused by the coronavirus spread and aggressive policy of the US Fed.
The cryptocurrency needs a bigger share in the global investments market since concerns about surging inflation are rising and speculators are becoming more active despite the current volatility. From April to June, bitcoin, the world's largest crypto asset, dropped by 56% before it hit its record high in November. However, a bit later, it slumped by more than 30%. However, this has done little to combat the record flow of cash.