Cryptocurrencies rallied to offset some of the losses made in the last week, mirroring the two tech stock indices as Elon Musk reached a deal to buy Twitter.
Bitcoin, the largest coin by market cap, gained 4.06% to US$40,572, its highest value in four days.
The cryptocurrency is trading just above its key support level, having dropped as low as US$38,338 yesterday.
Ethereum also climbed, up 5.55% to US$3,001. Like Bitcoin, it is trading just above its key support level of US$3,000, and at its highest level since Thursday.
As equity investors slowly moved into cryptocurrencies over the last year, the stock and crypto market have become increasingly linked.
Digital currency therefore often mirrors the movements of tech stocks and indices, in particular, the Nasdaq in the US and the Hang Seng in Hong Kong.
Yesterday, Twitter confirmed that it had agreed to a US$44bn takeover offer from Elon Musk, the CEO of Tesla, which sent the social media company’s shares rallying 5.66% to US$51.7p.
As a result, the Nasdaq gained by 1.29%, or 166 points, to 13,004.
The Hang Seng index, which does not feature Twitter but likely read across from the Nasdaq, is currently up 0.55%, or 110 points, to 19,973.
According to Naeem Aslam, market analyst at Avatrade, despite its rally Bitcoin does not look ready yet to enter a bull rally.
In some of the altcoins, Solana gained 4.27% to US$100.95, Terra was up 5.83%% to US$95.42 and Dogecoin, the token publicly backed by Musk, surged 25% to US$0.1591.
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