Bitcoin hits highest level in two weeks as big-money bets flow

Bitcoin rallied to a two-week high as a risk-on sentiment returned following selloffs in more speculative corners of financial market.

The token rose as much as 5.7% before trimming some gains to trade at $54,400 as of 10:29 a.m. in New York. Ether — the world’s second largest cryptocurrency — jumped as much as 3.8%. The gains mirror broader risk-on optimism, with the Nasdaq 100 Index recovering from a decline Monday that pushed the tech index to a so-called correction level.

“Bitcoin is unlikely to be a great ‘flight to safety’ play going further,” Matt Maley, chief market strategist at Miller Tabak + Co. said in a note Tuesday. “Instead, we feel that it is more of a ‘risk-on/risk-off’ play.