Bitcoin Recovers, Climbs 7.6% to Pass $20,400

Following its previous closing on Saturday, Bitcoin increased 7.6% to $20,404 on Sunday, indicating a rebound from a severe dip on Saturday.

Bitcoin, the world's largest and best-known cryptocurrency, is currently up 16.7% from its low of $17,592.78 on June 18 this year, when it fell on investor concerns about the crypto industry's rising problems and a broader pullback from risky assets.

The spike in Bitcoin, according to Andrew Brenner, head of international fixed income at National Alliance Securities, is likely the consequence of individual investors purchasing the digital currency during the weekend, when few professional traders are working.

"Some purchasers believe now is a good time to buy since Bitcoin has dropped to a level where it seems to have some near-term appeal," Brenner said. Bitcoin and other digital currencies, he noted, were exceedingly volatile.

Ether, the cryptocurrency tied to the Ethereum blockchain network, gained more than 13% to $1,131 on Sunday, compared to its previous closing on Saturday, which was $993, the lowest price since the start of the year.

The crypto market sell-off has coincided with an equities sell-off, with U.S. stocks falling by the most in two years on worries of increasing interest rates and the looming possibility of a recession.

Digital currencies, according to Brenner, are not a suitable investment at a time when the Federal Reserve of the United States is reducing the supply of dollars by discontinuing its expansive monetary policy.

"Digital currencies are not where you want to be as long as the dollar remains strong," Brenner said.