Bitcoin has bucked up today after outflows yesterday were the highest since September last year, which some observers said could be a positive sign.
Nearly 30,000 of the number-one cryptocurrency left exchange order books yesterday, according to analytics firm CryptoQuant, the largest number since September 10.
The price of Bitcoin settled at US$42,000 in trading yesterday, but was up 5.6% over 24 hours to US$43,722 at the time of publication.
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Some analysts had predicted a tumble closer towards US$30,000, according to Cointelegraph, but the latest signs could indicate that buyers are comfortable entering the market at just above US$40,000.
Market analyst Craig Erlam at Oanda said: “Bitcoin is enjoying some mild reprieve over the last couple of days as risk appetite has returned a little in the markets.
“While some may be hoping the crypto has hit a bottom, after seeing strong support around $40,000 earlier this week, there's little yet to suggest that's the case.
“It's still early days but the rebound hasn't been particularly forceful. It was lifted by the US inflation data though, which has boosted risk appetite more broadly.
“Whether that will be enough is another thing.”