Bitcoin snaps 5-day slide after briefly crashing below US$30,000
BNN Bloomberg
Bitcoin rebounded from a swoon below US$30,000 as a selloff in stocks eased and a bout of calm washed across global markets.
The world’s largest digital token snapped a five-day slide that had cut its price by more than 20 per cent. Bitcoin added as much as 5.4 per cent on Tuesday before giving up some gains and trading at around US$31,580 as of 9:47 a.m in New York. Ether at one point climbed 7.2 per cent, while coins like Solana and Avalanche were also in the green. The crypto recovery came as equities advanced across the U.S. and Europe, highlighting how the two asset classes are trading in tandem.
Bitcoin’s recent plunge has taken it to levels last seen in the middle of 2021, reversing a bull market that peaked in November. Whether the calm will last is an open question. Tightening monetary policy to combat runaway inflation is curbing liquidity, creating a formidable obstacle for speculative assets like cryptocurrencies.
Michael Novogratz, the billionaire cryptocurrency investor who leads Galaxy Digital Holdings Ltd., warned that he expects things to get worse before they get better. Among challenges facing digital assets is that they’re increasingly trading in line with technology stocks, which are getting hammered by rising interest rates.
