Bitcoin, ether recover after sharp decline

Bitcoin and ether rebounded on Tuesday after sharp declines caused by global market volatility. Bitcoin recovered to over $56,000, while ether surged 4.6 per cent to surpass $2,500.

This partial recovery follows a severe drop on Monday, with bitcoin falling below $50,000 and ether experiencing its biggest decline since 2021.

The selloff marked the first significant stress test for digital assets since the launch of bitcoin and ether exchange-traded funds in the US earlier this year.

Despite substantial outflows from bitcoin ETFs and a large liquidation of crypto positions, investor interest in ether ETFs led to a $49 million net inflow.

However, some market participants remain cautious, citing ongoing macroeconomic uncertainties and Middle East tensions as potential risks to sustained recovery.

Attribution: Bloomberg