Bitcoin breached $39,000 for the first time in two weeks as traders speculate the largest cryptocurrency may have reached a bottom following its recent collapse from record highs.

The digital asset gained as much as 2% to $39,267 before paring the increase. It hit a record of almost $69,000 in November. Ether outperformed its larger rival, rising as much as 5% to $2,814. Solana gained even more, jumping about 15% in the past 24 hours.

Expectations of tightening monetary policy helped spur a bearish downturn last month in cryptocurrency assets. However, confidence and risk appetite appears to be returning, according to a report by Arcane Research. Over the last week, Bitcoin has traded sideways with uncharacteristically low volatility, the researchers said.

Bitcoin has developed a strong correlation with the U.S. stock market, particularly the technology-heavy Nasdaq 100 index. However, when the stock market isn’t trending strongly in either direction, Bitcoin is “its own animal,” said Nathan Batchelor, lead Bitcoin analyst at SIMETRI Research. Correlation between the Nasdaq and Bitcoin currently sits at 0.45, with 1 equating to lockstep moves.

“The thing that makes crypto unique is that it’s got its own pulling forces,” said Batchelor. But, he added that “when the stock market is moving, we do have to bear in mind that its personality is magnified.”

Nicholas Cawley, a strategist at DailyFX, cited $39,600 as an important level. He expects Bitcoin’s short-term trading zone to settle between $32,980 and $39,620.

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