Coming off the best week for digital currencies since late July, bitcoin, the world’s No. 1 digital currency, was trading marginally lower on Monday.
In early action, a single bitcoin
BTCUSD, -0.72%
was changing hands at $6,588.19, down 1.3% since Sunday at 5 p.m. Eastern Time on the Kraken exchange, and off a late-Friday high of $6,808.
Crypto bulls are riding high after to total market value of cryptocurrencies has risen by more than $20 billion over the past seven sessions, perhaps, signaling a halt in a monthslong bitcoin bear market, which has the price of the digital currency down more than 50% in 2018.
Most notably former Fortress Investment Group fund manager Mike Novogratz, who told CNBC Friday that “the sky is the limit,” adding that it’s impossible for bitcoin not to reach $8,800-$10,000 by the end of the year.
However, Kevin Davitt, a senior instructor at The Options Institute at Cboe Global Markets has called for caution, warning investors this isn’t the first rally of the year. “Perhaps this is the beginning of a meaningful move higher for the cryptos after months of pressure. Only time will tell if this rally has legs,” wrote Davitt in a newsletter Monday.
“There have been at least 5 significant moves higher (in percentage terms) for bitcoin since the decline began in earnest in early January. While cryptos may be moving with relatively muted volatility in the short term, there’s no guarantee that will continue.”
Read: Battered bitcoin bulls are latching on to this seasonality chart
XRP giving back gains Monday
After rallying as much as 75% Friday, XRP
XRPUSD, -6.24%
the coin that runs on the Ripple protocol has cooled, falling 9.1% Monday, trading at 52 cents. Other altcoins, the collective name for the group of coins other than bitcoin, are underperforming bitcoin Monday. Ether
ETHUSD, -2.45%
was off 3.5% at $232.89, Bitcoin Cash
BCHUSD, -2.52%
had lost 3.8% at $466.40 and Litecoin
LTCUSD, -3.90%
was down 5.7% to %57.27.
In futures trading, the Cboe Global Markets Group Inc.’s October contract
XBTV8, -1.97%
was down 2.4% to $6,565 and the CME Group Inc. September contract
BTCU8, -2.00%
was of 2.2% at $6,590.
Read: Opinion: If you want financial secrecy, bitcoin and other cryptocurrencies can’t deliver it
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