Bitcoin holds above $20,000 after a week of forced crypto selling

Cryptocurrencies showed tentative signs of recovering from last week’s rout, with tokens like Avalanche gaining and Bitcoin holding above $20,000.

Avalanche advanced as much as 9.7%, leading gains among altcoins like Chainlink, Polkadot and Polygon on Monday. The MVIS Cryptocompare Digital Assets 100 index climbed 4.9% as of 4:30 p.m. in London. Bitcoin reversed earlier losses to trade 0.5% higher for the session.

After a turbulent week that saw Bitcoin plunge below the $20,000 level for the first time since late 2020, some market watchers are pointing to tentative signs that prices have bottomed out — at least for now. Realized losses on Bitcoin holdings reached a record $7.3 billion last week, Glassnode said in a report Monday.