Bitcoin surged over $20,000 as the US dollar weakened
Bitcoin surged past the $20,000 barrier on Friday, its best day in six weeks, as the US dollar fell broadly and markets found reasons to be cheerful at the end of a dour week.
Bitcoin, the largest cryptocurrency by market value, rose more than seven percent to $20,796, a two-week high. Ethereum, the second-biggest cryptocurrency, rose 5 percent to also hit a two-week peak at $1,717. Bitcoin had been as low as $18,540 on Wednesday.
Analysts say that the positive sentiment seen across asset classes on Friday was broad-based, with no specific trigger driving the gains. The safe-haven dollar dropped, while Chinese stocks rallied, leading the market higher.
If cryptocurrencies can maintain their current values until Sunday’s close, Bitcoin could see a second consecutive weekly rise, and its best week in about a month.
Ether’s volatility during the weekends may be amplified by an impending software upgrade called the “merge”, which is scheduled to take place sometime between September 10th and 20th. The exact timing is uncertain at this point.
This shift will change how transactions are processed entirely and is supposed to minimize energy consumption. Some exchanges are planning to halt deposits and withdrawals while the upgrade is taking place.
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