• Cryptocurrencies resumed their rebound, with bitcoin retaking $59,000
• Ether advanced nearly 10% to $2,584.10 after leading declines in cryptocurrencies and related stocks on Wednesday
• Shares of Coinbase and MicroStrategy gained 7% and 8% respectively
Cryptocurrencies resumed their rebound from their big sell-off earlier in the week, with Bitcoin retaking $59,000.
Bitcoin Price Rises Back Above $59,000
The price of the flagship cryptocurrency was last higher by 8% at $59,790.78, according to Coin Metrics, rising above the $55,000 floor that has supported it for much of this year.
Ether advanced nearly 10% to $2,584.10 after leading declines in cryptocurrencies and related stocks Wednesday. Both coins are still on pace for weekly losses.
Crypto-Related Stocks Rebound
Shares of Coinbase and MicroStrategy gained 7% and 8%, respectively.
Market Tries to Find Footing After Monday’s Tumble
The market is trying to find its footing after it tumbled on Monday as the unwinding of the yen carry trade deleveraged markets and U.S. bond yields rallied on fears of a recession. Bitcoin briefly fell below $50,000 after trading near $70,000 in the week prior.
Worries kicked in late last week however following the weaker-than-anticipated July jobs report.
“Macro is taking the front seat for the next month or two,” said Ryan Rasmussen, an analyst at Bitwise Asset Management. “From rising tensions in the Middle East to the implosion of the yen carry trade to the fear of a recession in the U.S., everyone is worried about it and when the next shoe will drop.”
Choppy Trading Expected in August
August was always expected to be a month of choppy trading for crypto. Until these worries subside, Rasmussen said most institutional investors are likely to prioritize their equity portfolios over the 1% to 5% they have allocated to crypto.
“Multiple forces and reactions are causing a sideways bounce in the crypto market,” said Bitcoin IRA cofounder and chief operating officer Chris Kline. “Crypto continues to feel malaise, mostly from investors taking a wait-and-see approach on whether the Federal Reserve will cut rates and if this correction is just a blip or cause for more concern.”
