Bitcoin Rose Above $61,000 And Solana Rising 8%, Leading Crypto Gains

Bitcoin (BTC) experienced a notable recovery on Tuesday, climbing over 3% to $61,741.78, according to Coin Metrics.

TakeAway Points:

  • After falling below $60,000, Bitcoin rose more than 3% to $61,741.78, matching increases in Nvidia and the Nasdaq Composite.
  • After a significant update, Solana led the cryptocurrency market with an 8% increase; Chainlink’s token had a 7% increase.
  • Rivals of Ethereum also experienced gains: Binance Coin was up 3%, Polkadot was up 5%, and Cardano’s ADA was up 6%.

Bitcoin Rises Following Short Decline

Bitcoin (BTC) experienced a notable recovery on Tuesday, climbing over 3% to $61,741.78, according to Coin Metrics. This rebound comes after the cryptocurrency dipped below $60,000 for the first time since early May, triggering a broad sell-off in the crypto market. The recovery in Bitcoin coincided with a bounce in Nvidia and the Nasdaq Composite, both of which had their worst days since April in the previous session. 

Noelle Acheson, economist and author of the “Crypto is Macro Now” newsletter, commented, “When the stock market turns, we are likely to see panic selling in crypto as well, for no fundamental reason other than emotion and perhaps the need to raise cash for margin calls.” She added, “Yesterday, crypto got hit with some risk asset jitters.”

Altcoins Drive the Resurgent Market

Solana (SOL) emerged as the leader in the crypto market on Tuesday, surging 8% following an announcement from the Solana Foundation about an update that will allow users to share on-chain actions as shareable links across the internet. This news also positively impacted Chainlink (LINK), which provides data feeds on the Solana network, resulting in a 7% gain for LINK. 

Other Ethereum rivals also saw significant gains: Cardano’s ADA rose more than 6%, Polkadot (DOT) jumped 5%, and Binance Coin (BNB) increased by 3%. Ben Kurland, CEO at crypto research platform DYOR, noted, “Today’s news from Solana is a jolt of positivity. The idea that more than a billion people can now easily access and use SOL is one that is uniformly positive for the alt coin and its ecosystem, and traders rallying into other alt coins are likely betting that this momentum will carry over into the broader DeFi and Web3 marketplace.” 

“I doubt we see the actual impact of this news for some time, and my money is on us heading back towards the type of market action we saw earlier this week.” he added.

Market Attitude and Dispositions

Despite the recent recovery, the crypto market has been under pressure. Bitcoin ETFs saw an outflow of $174 million as trading closed in New York on Monday, with nearly $1 billion in outflows last week. 

The CoinDesk Indices Bitcoin Trend Indicator shows a significant downtrend, while CoinDesk 20, which measures the largest digital assets, remains flat. Ether (ETH) has not experienced the same pricing pressure as BTC. Ether staking protocol Lido (LDO) continues to outperform, up 14% on the day and 25% in the last week, driven by its fees, revenue, and total value locked.

The market has also been affected by significant sell pressure due to the upcoming Mt. Gox bankruptcy redemptions and sales by miners. Over the weekend, major tokens slid as much as 7.5%, causing over $150 million in bullish bets to be liquidated. Bitcoin lost 3%, while ether, Cardano’s ADA, and BNB Chain’s BNB registered similar losses. Solana’s SOL dropped 7%, and meme coins dogecoin (DOGE) and shiba inu (SHIB) fell nearly 5%. 

The CoinDesk 20 slumped just over 4%. Singapore-based QCP Capital noted, “Miners have been under tremendous pressure to sell given higher breakeven prices post-halving. Miner BTC holdings have dropped to the lowest level we’ve seen in the past 14 years, with total reserves lower by 50,000 from the start of the year.” Additionally, the German Federal Criminal Police Office (BKA) has been moving tens of millions worth of BTC to crypto exchanges, further contributing to market jitters.

To Top

Pin It on Pinterest

Share This