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Bitcoin Steadies, Cryptocurrencies Attempt a Rebound

Bitcoin Steadies

Created by TradeOr

3rd Party Analysis 09 Sep 2021

Key Takeaways

  • Bitcoin steadies after the selloff on Tuesday as investor panic cools down
  • Cryptocurrencies push moderately higher with the Ethereum and Solana tokens in the lead

Crypto Market Stabilizes as Bitcoin Steadies

The cryptocurrency market mostly levelled on Wednesday and early Thursday following a whopping $400bn flash crash on Tuesday, the day El Salvador made bitcoin its national currency.

The price of bitcoin struggled to perform to the upside on Wednesday and finished the day essentially flat near $46,300. Bitcoin bulls were not able to produce a significant move higher as the session high of the asset reached less than 1% above its opening price.

There was more room to the downside, however, as the original cryptocurrency fell to an intraday bottom of $44,400, or a 5% loss.

A day earlier, the leading digital asset edged lower by 17% as a flash crash erased billions of dollars in value. Bitcoin was able to pare some of Tuesday’s losses the same day as it closed lower by about 10% to $46,750.

Tuesday’s trading was bitcoin’s worst single-day percentage-wise performance since May 23 when the asset dropped nearly 12% dragged lower by China’s crackdown on crypto mining and trading.

Digital Assets Rally and Recover

While bitcoin remained pinned near its opening levels on Wednesday, ether rallied about 8% from its lowest point to its closing price. On the day, the Ethereum token gained 1.7% to close near $3,500 per coin.

Other coins have been even more successful in paring their losses from Tuesday’s selloff. Solana’s SOL token recovered in full the amount it lost during the crypto flash crash. Solana’s cryptocurrency declined from $184 to $138, a 25% drop. A day after the major loss, SOL erased the loss and settled at a closing price of about $190.

Early on Thursday, major crypto assets trade mixed. Bitcoin’s price is relatively unchanged near $46,100 per coin. Ether is hovering slightly higher on the day, currently near $3,470. The Solana coin reached a fresh record of $210 per coin, up about 13% on the day.

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