Cryptocurrencies resume rally, Bitcoin back to $59,000 | Wilnesh News

Cryptocurrencies are recovering from a sharp sell-off earlier this week, with Bitcoin regaining $59,000.

The price of the flagship cryptocurrency recently rose 8% to $59,385.40, surpassing the $55,000 floor that has supported it for much of the year, according to Coin Metrics.

Ethereum rose 6% to $2,492.28 on Wednesday, leading losses in cryptocurrencies and related stocks. Both coins are still on pace for weekly losses.

Shares of Coinbase and MicroStrategy each rose 6%.

Markets are trying to regain their footing after Monday’s plunge as the unwinding of yen carry trades deleverages the market and U.S. bond yields rise on recession fears. Bitcoin briefly fell below $50,000 after trading close to $70,000 the previous week. However, worries began late last week as the July jobs report was weaker than expected.

“Macroeconomics will dominate the next month or two,” said Bitwise Asset Management analyst Ryan Rasmussen. “From escalating tensions in the Middle East, to the collapse of the yen carry trade, to fears of a U.S. recession, Everyone is worried about when the next shoe will drop.”

August has always been known to be a volatile month for cryptocurrency trading. Rasmussen said that until these concerns subside, most institutional investors are likely to prioritize their stock portfolios over the 1% to 5% allocated to cryptocurrencies.

Chris Klein, CEO of Bitcoin IRA, said: “A variety of forces and reactions are causing the cryptocurrency market to rebound sideways. The cryptocurrency market continues to feel discomfort, mainly because investors are taking a wait-and-see attitude on whether and whether the Federal Reserve will cut interest rates.” This adjustment is just a small episode, or it may attract more attention.

Bitcoin is up 38% this year.