Bitcoin held steady on Tuesday following an early evening rebound on Monday from Wall Street’s worst week of the year.
The price of the flagship cryptocurrency was last higher by less than 1% at $57,375.00. Earlier, it rose as high as $57,976.80 after jumping as much as 6% on Monday night, according to Coin Metrics. Last week, bitcoin tumbled 9% for its worst weekly performance since August 2023.
Bitcoin performance in the past five days
In regular trading, Coinbase and MicroStrategy climbed 5.2% and 9.2%, respectively, on Monday. Those stocks rose as the S&P 500 broke a four-day losing streak and the Nasdaq Composite gained more than 1%. The three major averages last week posted their worst weekly performance in 2024. Both were little changed in premarket trading Tuesday.
Analysts have warned that bitcoin lacks major catalysts at the moment and that in their absence, prices are likely to be sensitive to macro factors and continue to consolidate.
Seasonality is also a factor. For bitcoin, similar to other risk assets, September is a historically weak month.
“For bitcoin to experience some upside in the upcoming week, it is essential for the U.S. equity markets to find some stability or positive momentum, potentially leading to a decrease in [crypto] ETF outflows,” Bitfinex analysts said in a note Monday. “This relief in the equity markets could help alleviate selling pressure on bitcoin, providing a conducive environment for a recovery.”
The U.S. presidential election is widely considered the next meaningful catalyst for bitcoin, which has been stuck between $55,000 and $70,000 for most of the year — after reaching its all-time high in March. The outcome of the election — whether former President Donald Trump or Vice President Kamala Harris were to win — could result in a sizable impact on bitcoin prices, according to Bernstein.