Cryptocurrency analysts weren’t quite sure what triggered the selloff.
Bitcoin rose 1.5% in early Asia on Tuesday, after strengthening overnight in line with stock markets and other risky assets, but many crypto traders remained jittery after the sharp drop and sudden Saturday.
The world’s largest cryptocurrency was around $50,800, after closing a choppy day on Monday up 2.2%.
“General confidence in crypto is still high and market sentiment is returning as we saw a general risky mood on Monday. The effect of Omicron seems much softer than what the market has digested,” Edison said. Pun, Principal Market Analyst at Saxo Markets. in Hong Kong.
Tuesday’s calm followed a storm.
Bitcoin fell 22% to just under $42,000 on Saturday due to a combination of profit taking and macro concerns, but rebounded a little later in the session as weak weekend liquidity exacerbated price movements.
Cryptocurrency analysts weren’t quite sure what triggered the selloff. But they pointed to a drop in margin borrowing and new futures positions, as well as activity by large bitcoin holders as evidence of a massive sell-off.
This crash was the biggest since bitcoin’s price collapsed 31% on May 19. According to cryptocurrency analytics platform Coinglass, bitcoin’s market capitalization fell to around $932 billion from $1.25 trillion on October 21.
Bitcoin set a new all-time high of $69,000 on November 10.
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Ether, the second-largest cryptocurrency in the world, was last down 0.3% at $4,340.
Against its larger counterpart, Ether sat at 0.085 bitcoin, just off Monday’s nearly four-year high.