cryptocurrency Tuesday recovered some of the previous day’s losses Bitcoin briefly Dropped below $50,000 First time in six months.
The price of the flagship cryptocurrency recently rose 6% to $56,438.59, according to Coin Metrics. ether Also up 6% to $2,546.77.
Markets rebounded broadly, including cryptocurrency stocks. Coin library increased by 1%, while micro strategy up 2%. Mining Company marathon numbers and Anti-riot platform Has not changed much.
Monday’s sell-off came as cryptocurrency traders were caught in a storm of liquidation by carry traders, rising concerns about a U.S. recession, escalating tensions in the Middle East and growing uncertainty over the outcome of the U.S. presidential election.
Bitcoin bounces back from Monday’s sharp sell-off
Bitcoin trades below $55,000 for much of the day Supported it most of this year when it works hard Return to March highs. Investors say the case for holding Bitcoin for the long term and its setup for the rest of the year has not changed. Matt Hougan, chief investment officer at Bitwise Asset Management, said that while this may be painful, it is a buying opportunity.
“We had a sell-off in global capital markets over the low-liquidity weekend that affected the cryptocurrency market, but nothing fundamentally changed for Bitcoin or cryptocurrencies, except that we were closer to a Fed rate cut and we were closer to quantitative easing.” , he told CNBC. “I think this is more of a catalyst than a headwind.”
In August, Bitcoin and Ethereum fell by 14% and 22% respectively. This year, they grew 32% and 11% respectively.
