The cryptocurrency market experienced a wild ride on Monday, with Bitcoin (BTC) dipping below $50,000 twice before staging a remarkable comeback. As of today, BTC is trading well above $55,000, a surge of over 10% from its lowest point yesterday.
The initial crash sent shockwaves through the crypto world, dubbed “Bloody Monday” on social media. However, the market seemingly took heart from improving economic data in the US, leading to a significant upswing. This positive shift was further bolstered by a slowdown in outflows from Bitcoin Exchange-Traded Funds (ETFs). While outflows continued on Monday at a rate of $168 million, this marked a decrease compared to the $237 million witnessed last Friday.
Adding to the bullish sentiment, a tweet by prominent crypto figure Collin Brown circulated widely. Brown highlighted the lack of selling activity from major institutional players like BlackRock and Fidelity, suggesting their continued confidence in Bitcoin and XRP. This resonated with investors, particularly those holding “diamond hands” – a term signifying long-term commitment to an asset.
Further supporting this notion, London-based Capula Management reportedly invested nearly $500 million in BTC ETFs on Monday. This move underscores the growing appetite amongst institutional investors for exposure to Bitcoin through regulated avenues.
Seasoned veterans in the crypto space also offered words of encouragement. MicroStrategy CEO Michael Saylor reaffirmed his unwavering belief in Bitcoin’s future and pledged to continue holding it. Similarly, banking giant JPMorgan expressed their view that a “buy-the-dip” opportunity might be approaching. This sentiment echoed the broader market recovery, with the tech-heavy Nasdaq Index bouncing back from an early-day slump.
Also Read: ARK Invest Buys $28M In Coinbase & Robinhood Amid Bitcoin’s 20% Plunge
Beyond Bitcoin, the altcoin space witnessed an even more pronounced rebound. Ethereum (ETH) surged past $2,500, representing an 8% gain. Major altcoins like Solana fared even better, with a 12% increase during the market-wide recovery.
While the immediate future remains uncertain, the resilience displayed by the crypto market after Monday’s crash is a positive sign. Investors will be closely monitoring economic data and institutional activity for further clues on the direction of the market.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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