Bitcoin held steady on Tuesday after an early rebound on Monday from Wall Street’s worst week of the year.
The price of the flagship cryptocurrency was last higher by less than 1% at $57,375.00. Earlier, it rose to $57,976.80 after jumping as much as 6% on Monday night, according to Coin Metrics. Last week, bitcoin fell 9% for its worst weekly performance since August 2023.
Bitcoin’s performance over the past five days
In ordinary trade, Coinbase and MicroStrategy climbed 5.2% and 9.2%, respectively, there. The stock rose as S&P 500 broke the four-day losing streak and so on Nasdaq Composite earn more than 1%. Last week’s three major averages posted their worst weekly performance in 2024. Both were unchanged in pre-market trading Tuesday.
Last week, it briefly fell below the floor of about $55,000. Analysts have warned that the cryptocurrency does not have a major catalyst at this time and if there is none, the price may be sensitive to macro factors and continue to consolidate.
Seasonality is also a factor. For bitcoin, similar to other risk assets, September was a historically weak month.
“For bitcoin to experience change in the coming weeks, it is important for the US equity market to find stability or positive momentum, which could lead to a reduction in (crypto) ETF outflows,” Bitfinex analysts said in a Monday note. “This relief in equity markets could help ease the selling pressure on bitcoin, providing an environment conducive to recovery.”
The US presidential election is seen as the next important catalyst for bitcoin, which has been stuck between $55,000 and $70,000 for most of the year – after reaching an all-time high in March. The outcome of the election – whether former President Donald Trump or Vice President Kamala Harris will win – could have a significant impact on the price of bitcoin, according to Bernstein.