Latest Prices:
CoinDesk 20 Index: 1,782 (+8.8%)
Bitcoin (BTC): $54,931 (+6.4%)
Ether (ETH): $2,448 (+8.0%)
S&P 500: 5,186.33 (−3.0%)
Gold: $2,455 (+2.2%)
Nikkei 225: 34,260 (+10.2%)
The cryptocurrency market showed signs of recovery on Tuesday following Monday’s dramatic sell-off. Bitcoin briefly regained the $56,000 mark during the Asian morning hours, reflecting a broader market rebound. As of the latest data, Bitcoin is trading around $55,000, up approximately 7% from the previous day.
Solana (SOL) led the recovery with a notable 13% gain, trading around $137. XRP and DOGE also posted significant gains, rising by approximately 7.5% and 11.8%, respectively. Despite the recovery, Bitcoin’s price has since pulled back slightly from its peak.
“We might see a corrective rebound in Bitcoin’s price,” said Ruslan Lienkha, Chief of Markets at YouHodler. “However, this increase will likely be limited due to the prevailing pessimism in the broader markets.”
On the ether front, spot ETFs saw substantial inflows of nearly $49 million on Monday, even as the price of ETH dropped by up to 20%. This marked Ether’s most significant single-day drop since 2021. The market turbulence was driven by large asset movements by Jump Crypto, which raised concerns about potential sales.
Despite this, professional investors seized the opportunity to buy the dip, leading to over $715 million in trading for ETH ETFs, the highest level since July 30. However, these ETFs are still in the red, with net outflows totaling $460 million since their inception. In contrast, Bitcoin ETFs saw over $1 billion in inflows within their first 12 days.
In a strategic move during the market downturn, ARK Invest purchased $17.8 million worth of Coinbase shares and $11.2 million in Robinhood stock. These acquisitions mark ARK’s first purchases of Coinbase (COIN) shares since June 2023 and its first of Robinhood (HOOD) since February.
Both stocks experienced declines on Monday Coinbase by 7.3% and Robinhood by 8.17%. ARK Invest’s strategy often involves buying shares during price dips, with plans to sell them once prices recover. The firm also maintains a policy of not allowing any single holding to account for more than 10% of an ETF’s portfolio, which has influenced its recent sales of Coinbase shares.
Overall, while the cryptocurrency market is showing signs of recovery, ongoing volatility and market sentiment continue to shape the landscape.
