Cryptocurrencies rebound across the board, with Bitcoin briefly surpassing $62,000 USD
After a significant sell-off in the cryptocurrency market recently, Bitcoin broke through $62,000 this week, resuming its uptrend. Bitcoin surged by over 12%, reaching above $62,000 at one point, significantly higher than the support level of $55,000. Ethereum also saw a surge of over 14%, approaching $2,700. Previously, Bitcoin and Ethereum had led the cryptocurrency market downturn. The market is trying to find a foothold, with the volatile cryptocurrency trading in August being seen as a critical period. Investors are concerned about whether the Federal Reserve will cut interest rates and if the market adjustment will continue. Bitcoin has risen by nearly 44% so far this year
According to the Zhitong Finance and Economics APP, cryptocurrencies have rebounded from a significant sell-off earlier this week, with Bitcoin breaking through $62,000 on Friday.
Data shows that Bitcoin rose by over 12%, reaching above $62,000, significantly higher than the support level of $55,000 for most of this year. Ethereum surged by over 14%, approaching $2,700. On Wednesday, both Bitcoin and Ethereum led the cryptocurrency market and related stocks to decline at one point.
By Thursday's close, the stock prices of Coinbase (COIN.US) and MicroStrategy (MSTR.US) rose by 7.50% and 9.07% respectively. Both continued to rise after hours.
As the unwinding of the yen carry trade drove the market towards deleveraging and US Treasury yields rose on concerns of an economic downturn, the market seems to be trying to find a foothold after Monday's plunge. Bitcoin briefly fell below $50,000, after trading close to $70,000 the previous week. However, concerns started to emerge in the market late last week following weaker-than-expected July employment reports.
Ryan Rasmussen, an analyst at Bitwise Asset Management, stated, "Over the next month or two, the macroeconomy will dominate. From escalating tensions in the Middle East to the collapse of the yen carry trade, and concerns about a US economic recession, everyone is worried about when the other shoe will drop."
August has been considered a month of high volatility in cryptocurrency trading. Rasmussen mentioned that until these concerns subside, most institutional investors may prioritize their stock portfolios over the 1% to 5% of assets allocated to cryptocurrencies.
"Various forces and reactions are leading to a lateral rebound in the cryptocurrency market," said Chris Kline, Co-founder and COO of Bitcoin IRA. "Cryptocurrencies continue to feel sluggish, mainly due to investors' wait-and-see attitude towards whether the Fed will cut interest rates and whether this adjustment is just temporary or will cause more concerns."
Bitcoin has risen by nearly 44% year-to-date