Bitcoin rises slightly as crypto and other risk assets look to rebound from sell-off

In this article

• BTC.CM=

Cryptocurrencies on Tuesday recovered some of the previous day's losses after bitcoin briefly fell under $50,000 for the first time in six months.

The price of the flagship cryptocurrency was last higher by 3.5% at $55,051.74, according to Coin Metrics. Ether, rose more than 2% to $2,457.73.

Markets broadly bounced early Tuesday, including stocks tied to the price of bitcoin. Coinbase, MicroStrategy and mining companies Marathon Digital and Riot Platforms all added about 2% each in premarket trading.

The sell-off took place as crypto traders were caught in a storm of carry traders unwinding their positions, heightened concerns about a U.S. economic recession, escalating tensions in the Middle East and increasing uncertainty about the outcome of the U.S. presidential election.

For much of the day, bitcoin was under the $55,000 floor that has supported it for most of this year as it struggles to reclaim its March highs. Investors say the case for holding on to bitcoin over a long term and its setup for the remainder of the year is unchanged. While it may have been painful, it's a buying opportunity, said Matt Hougan, chief investment officer of Bitwise Asset Management.

"We have a global capital market sell-off that impacted the crypto market on a low liquidity weekend, but nothing has changed fundamentally about bitcoin or about crypto except that we're closer to the Fed lowering rates, we're closer to quantitative easing," he told Our. "I see that as more of a catalyst than a headwind."

Bitcoin and ether are down 16% and 25%, respectively, for August. For the year, they're up 29% and 7%, respectively.

Don't miss these cryptocurrency insights from Our PRO:

• Kamala Harris has entered the U.S. presidential election. What that could mean for crypto
• Ether ETFs launch may pale in comparison to debut of bitcoin funds, investors say
• Bitcoin could be heading for a 'summer of 2021 style' correction between record highs, data shows
• Investor demand returns to bitcoin despite stagnant price, data shows

Disclaimer: The copyright of this article belongs to the original author. Reposting this article is solely for the purpose of information dissemination and does not constitute any investment advice. If there is any infringement, please contact us immediately. We will make corrections or deletions as necessary. Thank you.