Bitcoin is leading the way to recovery in the crypto market. In terms of value, the price of Bitcoin gained $9.000 per unit, after recovering from the market crash last Monday.
The world's leading cryptocurrency is trading above $58.000, recovering significantly from a significant drop and a new "Black Monday" that scared many investors.
Last Monday, global markets were hit by a sharp drop in Japanese stocks, which was driven by aggressive interest rate hikes in Japan, economic uncertainty in the United States and rising geopolitical tensions in the East. The drop affected the cryptocurrency market, causing a notable correction in the price of Bitcoin, which reached over $49.000 per unit last week.
However, at the time of writing, the cryptocurrency has recovered significantly, rekindling investor interest and confidence in the market.
Bitcoin price rose 18% in the last week
According to data from CoinMarketCap, the price of Bitcoin (BTC) has risen by around 18% in the last week.
As the platform's BTC price chart shows, Thursday was a particularly notable day, with the cryptocurrency's price increasing by 12% in a single day. This, according to several analysts, marked Bitcoin's biggest rally since February 2022.
Data shows that BTC closed at around $61.720 on Thursday, a rally that came amid upbeat economic data in the United States that eased concerns about a potential recession in the country.
Source: CoinMarketCap
Bitcoin's price recovery came after a sharp drop that took the cryptocurrency to a low of $49.500 on Monday, when global markets suffered one of the worst declines in years.
On the one hand, the recent volatility experienced over the past week encouraged cryptocurrency “whales” to increase their cryptocurrency holdings, accumulating more assets during the market crash. All of this indicates a strong conviction in the potential for Bitcoin and cryptocurrencies to appreciate in the future. On the other hand, several analysts have highlighted that the rapid recovery in the price of Bitcoin suggests that investors continue to have confidence in the world’s largest cryptocurrency.
Investors remain attracted to Bitcoin
Investors' interest in Bitcoin is reflected not only in its market price, but also in the volume of inflows recorded by cash exchange-traded funds (ETFs) in the United States.
According to data from the SoSo Value platform, Bitcoin spot ETFs saw positive inflows on August 6 and 7, amounting to $45,14 million and $192,56 million, respectively. This data shows how Bitcoin has continued to attract investors, despite the current state of the markets. Much of the confidence that investors have in the leading cryptocurrency is due to its growing institutional acceptance as a legitimate and valuable asset. Thus, despite the net outflows of $168,4 million on Black Monday, which reflected the nervousness in the market, Bitcoin’s rapid recovery has led many to reconsider their investment strategies.
BlackRock's ETF, known as IBIT, has been particularly successful, capturing $20.320 billion in investments to date.
Source: SoSo Value
The success of this Bitcoin-based investment vehicle is an indication that institutional investors are viewing cryptocurrency not just as a high-risk investment, but as a safe haven in an uncertain economic environment.
Cryptocurrency market recovers after Black Monday
The cryptocurrency market has also recovered remarkably since Black Monday on August 5. Although this was a devastating day for the markets, cryptocurrencies have proven resilient in the face of major events like this.
CoinMarketCap shows that the cryptocurrency market cap fell to $1,8 trillion on Monday, August 5. However, at the time of writing, the market value of all existing cryptocurrencies is over $2,05 trillion, which is a recovery of almost 14% over the past 7 days.
Source: CoinMarketCap
This rally has been driven by a combination of factors, including positive US economic data and a stabilization in the stock markets.
Overall, sentiment in the cryptocurrency market remains bullish, with Bitcoin considered a valuable asset globally and other cryptocurrencies, such as Ethereum and Solana, showing resilience following Black Monday.
IMPORTANT: The content of this article is for informational purposes only and, in no case, what is written here should be taken as investment advice or recommendations. Bit2Me News reminds you that before making any investment you should educate yourself and know where you invest your money, as well as the pros and cons of the system. We separate ourselves from the actions and consequences that ignorance may entail. If you decide to invest in this or another asset class, you are solely responsible for the consequences that your decisions and actions may have.
