Bitcoin rose to its highest level in more than a month as the broader U.S. financial markets sold off Tuesday.
The digital currency was trading near $9,436 as of 4:21 p.m. ET, and has jumped nearly 20 percent in the past week, according to data from Coindesk. Bitcoin is coming off of its worst quarter ever, when it lost roughly 48 percent of its value in three months.
Other financial markets were moving in the opposite direction of the cryptocurrency Tuesday, hurt by rising interest rates and bearish comments from a conference call by Caterpillar, which is often seen as a bellwether for the U.S. economy.
The Dow Jones industrial average closed more than 400 points lower, dropping more than 750 points from its session high to the lows of the day. The S&P 500 fell 1.3 percent, and the Nasdaq composite declined 1.7 percent.
Spencer Bogart, partner at Blockchain Capital, said bitcoin presents an appealing alternative for investors selling on macro-economic news this week.
"Bitcoin remains uncorrelated to traditional asset classes, is more than 50 percent off its highs and has significant upside," Bogart said. "It feels like a no-brainer from a portfolio management perspective to allocate some capital to crypto."
News this week that Goldman Sachs made its first cryptocurrency hire, and a Thomson Reuters survey published Tuesday that said one in five firms are considering trading digital currency in the next year, marked a shift in crypto investor sentiment and helped prices, according to Joe DiPasquale, CEO of BitBull Capital.
"As reports continue to show more and more institutions gearing up to participate in crypto markets, valuations are likely to continue to increase in a steady manner," DiPasquale said. "There has been a significant shift in sentiment towards the positive, with Bitcoin's spot price seeing the most notable jump over the last week."
Tom Lee, managing partner and the head of research at Fundstrat Global Advisors, said the Goldman hire is good news for the future of cryptocurrency.
"It's a sign that a major investment bank thinks there's enough clarity and custody and money to be made to actually offer that trading service," Lee told CNBC's Fast Money Tuesday. "I think it's a sign that this is becoming mainstream."
Lee also highlighted an April uptick in Fundstrat's Bitcoin Misery Index. The index is measured out of 100, and shows how happy or sad investors feel owning bitcoin. In February, the index was around 18 which Lee said at the time was the lowest reading since Aug. 2011. As of Tuesday, the index recovered to around 47, Lee said.
Bitcoin hit its highest level since March 14 Tuesday but is still down more than 30 percent this year, according to CoinDesk.
Much of the digital currency's drop in 2018 was attributed to investors selling to meet U.S. tax obligations, regulatory scrutiny, and major tech companies banning advertisments for cryptocurrencies.
Other digital currencies also outperformed the broader markets, and all of the top ten by market capitalization were trading higher Tuesday, according to CoinMarketCap.com. Ethereum, the second largest cryptocurrency, rose 10 percent, while ripple was up more than 7 percent, according to data from CoinDesk.
Zedd, 3LAU and Big Sean: Tickets On Sale for First Blockchain Music Festival
Tickets for the first music festival set to be powered by blockchain technology are now on sale.
Scheduled for this fall, the Our Music Festival is launching its own virtual currency — the OMF toke
How Crypto Reacted to This Week's SEC Bitcoin ETF Delay
It was an expected result at an unexpected time.
The news broke on August 7 that the U.S. Securities and Exchange Commission (SEC) is kicking the can on its decision to approve or disapprove a prop
Microsoft Looks to Trusted Computing for Blockchain Security Boost
Two newly published patent applications from Microsoft suggest that the software giant is looking at the use of trusted execution environments, or TEEs, within its blockchain offerings.
Crypto Millionaire Lost 5,500 Bitcoins in Alleged Investment Scam
A 22-year-old cryptocurrency millionaire has lost more than 5,500 bitcoins in an alleged investment scam in Thailand – one that drew public attention due to the involvement of a local actor.
China's Communist Party Publishes Blockchain Tech 101
China's Communist Party is moving to make blockchain literacy the norm across public offices with the publication of an explainer for officials and members.
Released by the publishing house of the
Blockchain Social Network Minds Is Migrating to Ethereum for Launch
Blockchain-based social network Minds is migrating its platform to the ethereum network, the startup announced Monday.
After roughly four-and-a-half months on its Rinkeby test network, the startup
Bitcoin Trading Is Illegal in Saudi Arabia, Warn Watchdogs
A governmental committee comprised of Saudi Arabian regulators has issued a statement clarifying that cryptocurrency trading is illegal in the kingdom.
According to a statement issued Sunday, the s
Former S&P President Leads Seed Round for ICO Compliance Startup
Regtech and compliance startup iComply has just completed a seed funding round led by former Standard and Poor's president Deven Sharma.
The firm – which seeks to develop standard compliance tools