Bitcoin recovers above $55,000 after sharp decline in market rout
TLDR
- Bitcoin price rises by 8.2% to $55,690 after recent drop to $49,000, but recovery remains uncertain amid US recession fears and potential $2 billion asset sale.
- Cryptocurrency market recovers from worst crash since 2022, with Bitcoin hitting six-month low below $50,000 and other major cryptos like Ethereum, Binance Coin, Cardano, and Solana facing 15% drops.
- Overall crypto market capitalization falls below $2 trillion to $1.85 trillion, marking a 13% decrease in the 24 hours leading up to Monday.
The price of Bitcoin rose by 8.2% to $55,690 after falling to $49,000, though the recovery of cryptocurrencies remains uncertain due to fears of a recession in the US and the potential sale of $2 billion worth of assets by the government.
This recovery follows Bitcoin experiencing its worst price crash since 2022, with a drop of over 10% on Monday morning, reaching a six-month low. The world's leading cryptocurrency fell below $50,000 for the first time since February.
Other major cryptocurrencies also faced significant losses, with Ethereum (ETH), Binance Coin (BNB), Cardano (ADA), and Solana (SOL) all dropping by around 15% over the last 24 hours. The overall crypto market capitalization fell below $2 trillion to $1.85 trillion, marking a 13% decrease in the 24 hours leading up to Monday.
Key Takeaways
The latest price crash in cryptocurrencies coincides with a broader downturn in financial markets, partly triggered by fears of a looming global recession. Japan’s Nikkei 225 dropped over 12%, extending losses that began last week, marking its worst day since the “Black Monday” crash in 1987. In the U.S., the Nasdaq slid 3.4% last week into correction territory, concluding the tech-heavy index’s worst three-week stretch since September 2022, when the market was in freefall. The index fell another 3.4% on Monday. The sudden collapse in crypto prices took many market analysts by surprise, as the previous consensus among experts was that Bitcoin could rally to another new all-time high this year. This optimism was based on a successful halving and the inflow of billions of dollars worth of investment from newly approved Bitcoin spot exchange-traded funds (ETFs).
Think someone else should see this?
To invest in this opportunity and other opportunities across Africa
Download the daba finance app on your mobile through
Take action.
Download app
Start investing in Africa’s best opportunities, including stocks, bonds, startups, venture funds, and more.
Partner with us
Unlock exciting business opportunities and growth potential.
Join Daba
Become a part of our vibrant community and enjoy exclusive benefits.
Contact us
Reach out to us for inquiries, support, or collaboration.