Bitcoin prices moved higher Tuesday, touching a three-week high of $7,124.23, logging its fifth winning sessions over the last six.
The No. 1 digital currency rose as much as 6% Tuesday and is now more than 20% off its August 14 low. A single bitcoin BTCUSD, -0.27% last changed hands at $7,119.43, up 5.7% since Monday 5 p.m. Eastern Time on the Kraken exchange.
The move higher in bitcoin comes as the U.S. dollar is in the midst of a period of weakness, which has caught the eye of analysts.
“This kind of behavior is typical of commodities. As the buck falls, it takes more dollars to buy a barrel of oil or an ounce of gold and vice versa,” said Mati Greenspan, senior market analyst at eToro. “My suspicion here is that as the dollar dominates the markets, people are placing more faith in it over bitcoin and of course, vice versa, when the dollar falls.”
Altcoins surge, push market cap above $230 billion
Altcoins, or digital coins other than bitcoin, burst higher Tuesday. EtherETHUSD, +0.30% was trading up 6.9% at $295.79, Bitcoin Cash BCHUSD, -0.69%was up 7.9% at $572.90, Litecoin LTCUSD, -0.03% is up 9.8% at $63.44, and Ripple’s XRP coin XRPUSD, -0.33% was trading at 36 cents, up 8.4%.
The broad-based rally in digital currencies pushed the total value of all cryptocurrencies to $233 billion, according to data from CoinMarketCap.
Futures surged higher Tuesday. The Cboe Global Markets Inc.’s September contract XBTU8, -0.88% finished up 6% at $7,117.50, while the CME Group Inc. August contract BTCQ8, -0.42% closed trading up 5.4% at $7,090.