Digital currencies are on the rise again, with bitcoin surpassing the $60,000 mark.
Editor Thenews24.net
2 min read
In this article, cryptocurrencies have bounced back from a significant sell-off earlier in the week, with Bitcoin surpassing $60,000 late Thursday. According to Coin Metrics, Bitcoin’s price increased by 11% to $61,232.36, recovering from the $55,000 support level it has maintained for much of the year. Ether also saw a 12% rise to $2,644.90 after leading the declines in cryptocurrencies and related stocks on Wednesday. Despite these gains, both cryptocurrencies are still on track for weekly losses.
Shares of Coinbase and MicroStrategy rose by 7.5% and 9%, respectively, and continued to climb in after-hours trading. The market is attempting to stabilize after a sharp decline on Monday, triggered by the unwinding of the yen carry trade, rising U.S. bond yields, and recession fears. Bitcoin briefly dropped below $50,000 after nearing $70,000 the previous week. Concerns emerged late last week following a weaker-than-expected July jobs report.
Ryan Rasmussen, an analyst at Bitwise Asset Management, noted that macroeconomic factors are currently dominating the market, with rising tensions in the Middle East, the collapse of the yen carry trade, and recession fears in the U.S. all contributing to investor anxiety. August was anticipated to be a volatile month for crypto trading, and until these concerns are resolved, Rasmussen believes most institutional investors will focus on their equity portfolios rather than their smaller crypto allocations.
Chris Kline, cofounder and COO of Bitcoin IRA, mentioned that various forces are causing a sideways movement in the crypto market. He observed that investors are adopting a cautious approach, waiting to see if the Federal Reserve will cut rates and whether the recent correction is temporary or indicative of a larger issue. Bitcoin has risen nearly 44% this year.
For more insights on cryptocurrency, CNBC PRO offers analysis on Bitcoin’s optimistic trend during a typically quiet trading month, predictions on Coinbase’s potential mainstream success, and the implications of Kamala Harris entering the U.S. presidential election for the crypto market. Additionally, investors suggest that the launch of Ether ETFs may not have the same impact as the debut of Bitcoin funds.