Bitcoin rises beyond USD56K amid cryptocurrency market turmoil
(MENAFN) Bitcoin managed to recover some of its lost value, temporarily surpassing the USD56,000 mark on Tuesday after global market risk aversion had previously caused significant losses for major cryptocurrencies. The world's largest cryptocurrency saw a 3.48 percent increase, partially rebounding from a sell-off that had driven its price below USD50,000. In contrast, Ethereum, the second-largest cryptocurrency, experienced its most substantial decline since the collapse of the FTX exchange in 2022. By Tuesday, Bitcoin was trading at USD55,770, while Ethereum had risen to USD2,509, marking a nearly 3 percent increase.
Despite these gains, traders remain cautious, fearing that the recovery might be short-lived. They are looking for a broader improvement in the macroeconomic environment, particularly as tensions in the Middle East show signs of easing. CoinGlass data revealed that total liquidations in cryptocurrency bets reached approximately USD1.1 billion on Monday, marking one of the largest liquidation events since early March. This intense sell-off over a brief 36-hour period resulted in Bitcoin's market value plummeting by over USD150 billion. In response, investors in U.S. exchange-traded funds (ETFs) that invest directly in Bitcoin withdrew about USD423 million from their holdings. This volatile movement underscores the fragile nature of the cryptocurrency market, driven by broader economic sentiments and geopolitical factors.
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