Bitcoin was in recovery mode on Tuesday after plummeting to a six-month low of $49,000 on Monday.
Risk assets of all types experienced a mass sell-off on Monday due to heightened recession fears in the US and concerns over recent earnings results in the technology sector.
These concerns particularly impacted Bitcoin, causing an initial 16% fall in the BTC/USD pair.
However, the bulls have regained a significant portion of these losses, with Bitcoin’s spot price recovering to above $55,000 at the time of writing.
The rollercoaster start to the week has highlighted the intense volatility of Bitcoin markets and their tendency to move in tandem with large-cap US tech stocks.
However, there are also signs of stronger underlying support for the asset class since the approval of spot-bitcoin exchange-traded funds in the US in January.
Given the rebound in both cryptocurrency prices and US tech stocks (with the Nasdaq 100 up 150 points in Tuesday’s pre-market), there is evidence to suggest that the recent market turmoil was more of a temporary blip than a prolonged trend.
The Bitcoin price is $55,791.54, a change of 2.45% over the past 24 hours as of 4:32 p.m.
