Bitcoin, the largest digital currency, rose as much as 5.8% and was holding at about $31,450 as of 7:23 a.m. in New York on Wednesday. Other cryptos advanced too, including Ether and Dogecoin 

Bitcoin extended gains after breaking above the $30,000 mark that some cryptocurrency traders view as a key support level.

The largest digital currency rose as much as 5.8% and was holding at about $31,450 as of 7:23 a.m. in New York on Wednesday. Other cryptos advanced too, including Ether and Dogecoin, while the Bloomberg Galaxy Crypto Index was also in the green.

Eoin Treacy's view

Bitcoin dropped briefly below $30,000 yesterday and bounced back emphatically today. This is a clear upward dynamic and signals a return of demand in the region of the lows over the last couple of months. That supports the potential for at least a short-term bounce.

The correlation between bitcoin and the stock market suggests the risk-off environment was very short-term in nature and we are back in risk-on.

The big question at this stage is whether the Dollar is going to continue to trend higher from here. I was surprised it rallied this much and the primary argument is the Delta variant is more of threat to other countries than the USA. The Dollar was weaker today as it tests the March/April highs. Significant downside follow through will be required to confirm more than a pause.

Treasury yields are also steadying suggesting less demand for a safe haven in the short term.