Bitcoin rebounded on Monday, after a big dip
6/21/2022, 04:05 PM
Bitcoin prices rebounded on Tuesday after a weekend sell-off that took the cryptocurrency to a new low for the year.
The price of bitcoin jumped more than 6% to $21,420.94 around 11:50 a.m. ET, according to Coin Metrics. That followed a weekend dip to $17,958.05, the lowest level since December 2020.
The move higher came as a relief to many cryptocurrency investors after a string of bearish headlines in recent days. Wholesale prices rose at a near-record pace last week, and the Federal Reserve hiked its benchmark interest rate by three-quarters of a percentage point, the biggest increase since 1994.
Cryptocurrency companies, including Coinbase and BlockFi, have responded to the pressure by laying off employees. And crypto lenders, which promise users high yields for depositing their digital coins, have sparked insolvency fears.
Like in the stock market, investors are treading carefully around bear market bounces in the cryptocurrency world, with some anticipating that prices could fall even further before seeing a meaningful rebound.
"Bitcoin's weekend dip was, to put it simply, not deep enough," said Yuya Hasegawa, a crypto market analyst at Japanese bitcoin exchange Bitbank. "The macro environment has not really changed from last week's FOMC meeting: There still has not been a clear sign of inflation coming down and the Fed may still drive the economy into recession by raising rates too aggressively or simply failing to ease inflation fears."
The price of bitcoin jumped more than 6% to $21,420.94 around 11:50 a.m. ET, according to Coin Metrics. That followed a weekend dip to $17,958.05, the lowest level since December 2020.
The move higher came as a relief to many cryptocurrency investors after a string of bearish headlines in recent days. Wholesale prices rose at a near-record pace last week, and the Federal Reserve hiked its benchmark interest rate by three-quarters of a percentage point, the biggest increase since 1994.
Cryptocurrency companies, including Coinbase and BlockFi, have responded to the pressure by laying off employees. And crypto lenders, which promise users high yields for depositing their digital coins, have sparked insolvency fears.
Like in the stock market, investors are treading carefully around bear market bounces in the cryptocurrency world, with some anticipating that prices could fall even further before seeing a meaningful rebound.
"Bitcoin's weekend dip was, to put it simply, not deep enough," said Yuya Hasegawa, a crypto market analyst at Japanese bitcoin exchange Bitbank. "The macro environment has not really changed from last week's FOMC meeting: There still has not been a clear sign of inflation coming down and the Fed may still drive the economy into recession by raising rates too aggressively or simply failing to ease inflation fears."