Bitcoin Recovery Thanks to Traders Buying at Attractive Prices

Bitcoin, the largest digital currency in the world, rose by 3.48%,
compensating for some of the losses that pushed its value below $50,000 on Monday.

Content:

Details
Mixed Fears and Expectations
Large Liquidation of Bets
Cautious Optimism

Details:

Bitcoin regained part of its value, temporarily exceeding the $56,000 mark on Tuesday, after a wave of risk aversion impacted global markets and caused significant losses for most major cryptocurrencies. On Tuesday, Bitcoin rose by 3.48%, partially recovering from the intense sell-off that led to its price dropping below $50,000. On the same day, Ethereum, the second-largest cryptocurrency, experienced its largest drop since the collapse of the FTX platform in 2022. Bitcoin was traded at $55,770 and Ethereum at $2,509, with an increase of nearly 3%, as of 10:13 AM Singapore time.

Mixed Fears and Expectations:

Traders fear that these gains might be short-lived and are awaiting a broad improvement in the macroeconomic environment with the easing of tensions in the Middle East.
Sean McNulty, Trading Director at Arbelos Markets, noted an increase in cryptocurrency purchases amid falling prices,
but cautioned that sentiment remains wary due to concerns that this could be the start of a new wave of investors moving away from high-risk assets.

Large Liquidation of Bets:

According to Coinglass data, total liquidations in cryptocurrency bets reached about $1.1 billion on Monday,
representing one of the largest levels of liquidation since early March.
Within just 36 hours, the sharp decline in Bitcoin resulted in a loss of over $150 billion in its total value,
prompting investors in U.S. exchange-traded funds directly investing in Bitcoin to withdraw approximately $423 million from these funds.

Cautious Optimism:

However, some traders hope for a swift rebound. Rich Rosenblum, Co-CEO and Co-Founder of GSR Markets,
said, “The Bitcoin community was at its most optimistic just nine days ago,
and the price of the cryptocurrency could rise above $70,000 as quickly as it fell.”

Bitcoin Recovery Thanks to Traders Buying at Attractive Prices

Bitcoin Recovery Thanks to Traders Buying at Attractive Prices

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