After a sharp drop at the beginning of the week, the cryptocurrency market is actively recovering – Bitcoin (BTC) is again trading above $59,000. The price of the main cryptocurrency increased by 8.1% per day and amounted to $59,540 at the time of writing this material. Of course, it’s still a long way from the previous $67 thousand, but at this rate the recovery won’t take much time.
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Ethereum also saw gains of nearly 10% to $2,584.1 after becoming one of the top decliners in the cryptocurrency market earlier this week. However, both major digital coins are still on the path to full recovery. Shares of cryptocurrency companies are gradually recovering – Coinbase and MicroStrategy each increased by 6%.
The market is trying to stabilize after falling Monday as assets sold off as the yen weakened and U.S. bond yields rose amid recession fears. Bitcoin briefly dipped below $50,000 after recently trading near $70,000. Concerns began to mount late last week following the release of the US jobs report for July, which was weaker than expected.
«We expect macroeconomic factors to come to the fore in the next month or two,” said Ryan Rasmussen, an analyst at Bitwise Asset Management. “With rising tensions in the Middle East, the collapse of the yen carry trade and fears of a US recession, everyone is wondering when or if the next crash will happen.” Until these worries subside, most investment firms will likely prioritize their stock portfolios over investing in cryptocurrencies, Rasmussen said.
«“Multiple factors are causing the crypto market to move sideways,” said Bitcoin IRA CEO Chris Klein. — Cryptocurrencies continue to experience some gloom, mainly due to investors taking a wait-and-see approach to whether the Federal Reserve will cut interest rates. It is also not entirely clear whether the correction is a temporary phenomenon in anticipation of more serious concerns.”