12:48     06 August 2024    

The price of Bitcoin rose on Tuesday, increasing alongside broader risk-related assets. This came after significant losses in the previous session when the world's largest cryptocurrency hit its lowest level in more than five months, News.az reports citing Investing . Bitcoin increased by 8.2% over the past 24 hours, reaching $55,690.4 by 02:15 ET (06:15 GMT). Earlier, the token had dropped to $49,000 before starting to recover some of its lost ground. This quick rebound is linked to the recovery in stock markets, which helped lift prices in the broader cryptocurrency market. Despite the recent recovery, the prospects for more significant growth in Bitcoin remain uncertain. Traders continue to exercise caution due to ongoing concerns about a potential recession in the United States and a prolonged downturn in stock markets. The cryptocurrency market, known for its high volatility and speculative nature, is particularly vulnerable to capital outflows. According to data from digital asset manager Coinshares, investment products linked to cryptocurrencies showed an outflow of about $528 million over the past week. The majority of these outflows were from Bitcoin and Ethereum, driven by a general deterioration in market sentiment. The outflow was exacerbated by reports that the U.S. government had mobilized at least $2 billion in tokens for a potential sale. This raised concerns among investors about further price fluctuations. Additionally, uncertainty surrounding cryptocurrency regulation ahead of the 2024 presidential elections is also fueling caution in the market. While Short-Bitcoin instruments continue to attract capital, other assets are facing challenges due to volatile market conditions and economic issues, underscoring the instability of the current situation.