The price of bitcoin rose on Wednesday, continuing its positive trend after a drop. Although sentiment has improved somewhat, there are still signs that the cryptocurrency's recovery is losing steam.
This was reported by Investing, UNN wrote.
This trend was also reflected in the broader crypto market, where growth declined compared to the previous session, due to the ongoing impact of the US recession, rising interest rates in Japan, and tensions in the Middle East, which continue to weigh on investor sentiment.
Bitcoin rose by 1.9% to $56,952.4, and on Monday the price dropped to $49,000, but later recovered.Bitcoin's recovery remains fragile, and the market is waiting for further positive signals. After recovering by 4% on Tuesday, the growth rate of the world's largest cryptocurrency has slowed.
The price of the token is still below the level it reached before Monday's drop, as crypto markets are also feeling the effects of a potential massive sell-off by the US government and a decline in activity in the cryptocurrency derivatives market.Overall, the mood on the markets remains cautious due to risk aversion, which led to massive outflows from cryptocurrency exchange-traded funds last week.
Expectations for an improved regulatory environment in the United States are also declining amid the 2024 presidential race.Prices in the cryptocurrency market remain volatile. On Wednesday, the overall recovery of cryptocurrencies slowed down. Ether fell by 0.7% to $2,504.90, while XRP dropped by 0.4%. At the same time, ADA and SOL showed an increase of 1.3% and 7.2%, respectively. Among the meme tokens, DOGE fell by 0.9% and SHIB lost 1.4%.
Recall
Yesterday, August 6 , the price of bitcoin rose, along with other risky assets that were recovering from significant drops during the previous session, when the world's largest cryptocurrency dropped to its more than five-month low.