Bitcoin recoils 18% after slipping to $42,000

Highlights 

  • Bitcoin has turned extremely turbulent in the recent sessions
  • The crypto-asset bounced back sharply to $49,699 on Sunday
  • On Saturday, the cryptos encountered massive selling pressure

Bitcoin has turned extremely turbulent in the recent sessions following the subdued Wall Street closing on Friday, 3 December with the technology heavy market index Nasdaq Composite plunging nealy 2%. The sharp declines in a handful of Nasdaq components on Friday dragged the index deeper into the negative territory.

Partly relieving the market participants, bitcoin has bounced back sharply to a level near to $49,700 as crypto investors started accumulating on the dips as a level closest to $42,000 was last seen on 1 October, 2021.

According to the data available with Binance, bitcoin hit a 24-hour high of $49,699 on Sunday, 5 December, resurging more than 18% from the intraday low of $42,000, registered on Saturday. As at 10:38 am GMT, more than 55,600 units of bitcoin exchanged hands in the last 24 hours. Alongside bitcoin, sharp up moves were seen in other major cryptos with ethereum gaining nearly 20% from the intraday bottom.

A quick reversal in the value of bitcoin in the subsequent sessions apparently exhibits the confidence of crypto investors as they rejig their trade setups according to the persisting volatility in the markets with the renewed Covid worries.

Earlier on Saturday, the crypto-ecosystem encountered massive selling pressure across major cryptocurrencies following the market-wide selling in American equities overnight with all the three major stock averages terminating in the negative region. A sharp drop in the shares of DocuSign weighed heavily on the Nasdaq Composite as the stock concluded with a single session loss of little more than 42%.

A bleaker outlook for the revenue has been blamed for the collapse after the San Francisco-headquartered eSignature and electronic agreements services provider announced a lower-than-expected outlook for the October-December quarter. Shares of Adobe Systems, Tesla, Nvidia and Zoom Video Communications added to the losses, alongside 1-2% drop in stocks of Apple, Amazon, Microsoft and Facebook.

A contagion effect was witnessed in US-listed Chinese shares after Didi Chuxing Technology, the ride-hailing Chinese corporation listed on the New York Stock Exchange, announced the plans to delist from the leading bourse just after six months of its initial public offering (IPO). Following the move, shares of Trip.com Group, Baidu, Pinduoduo, JD.com and NetEase plunged 7-12%.

Cryptocurrencies are expected to witness volatile moves in the upcoming sessions as market participants tip-toe due to emerging concerns around the Omicron variant with multiple nations reintroducing the pandemic-induced restrictions, as well as mini lockdowns.

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