Bitcoin climbs more than 10% following an ‘extraordinary’ recovery in US equities

Quick Take

  • Bitcoin’s price fell to $32,999 on Coinbase during Monday’s trade.
  • However, the crypto’s price has since climbed above $36,000. 
  • Meanwhile, US equities markets fell sharply before recovering near the end of the trading session. 

Bitcoin’s price rose more than 11% during Monday afternoon trading after falling precipitously earlier in the day.

The fall to monthly lows below $40,000 that began last week continued into the new one, with bitcoin hitting a low of $32,933 on Coinbase, according to data from TradingView.

As of press time, bitcoin is trading hands at $36,600 – an increase of approximately 11.1%.

The price of ether, the native cryptocurrency of the Ethereum network, is up 12.9% from Monday’s low of about $2,159.

Given the impact of the global macroeconomic environment on digital asset markets – particularly worries about future action from the US Federal Reserve – it’s perhaps unsurprising that Monday also saw equities recover from their respective daily lows as well. The day’s trading session saw the Dow Jones Industrial Average fall by more than 1,000 points only to bounce back near the day’s end up 0.3%.

In what is perhaps a sign of the times, the Wall Street Journal deemed the event “extraordinary" as the Dow had never closed in the green after falling by that much within a session. 

As for what drove the equities action today, Bloomberg reporting pointed to retail selling pressure amid an existing decline.

Crypto stocks pare losses

Stock prices for publicly traded crypto companies were swept up in Monday’s early-day turbulence, adding to the woes seen on Friday.

Yet the late-day recovery helped those stocks end the day in a better position than they were earlier in the session.

Coinbase reversed its losses and closed down just 0.23% while MicroStrategy, which holds a significant amount of bitcoin on its balance sheet, ended the day down 1.45%. Both firms rose 17.8% and 16.1% from their Monday lows, respectively.

© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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