Bitcoin BTC/USD and Ethereum ETH/USD linked exchange-traded funds (ETFs) are demonstrating signs of recovery in the wake of Monday’s market meltdown, as the leading cryptocurrencies begin to stabilize.
What Happened: Bitcoin and Ethereum were showing signs of recovery after the “Black Monday,” with coins trading at 7.1% and 8.1% higher respectively. This improvement was mirrored in Bitcoin and Ethereum-based ETFs.
At the time of writing, Grayscale Bitcoin Trust GBTC was up by 3.24%, Fidelity Wise Origin Bitcoin Fund FBTC by 2.37%, Bitwise Bitcoin ETF BITB was trading 2.23% higher, and iShares Bitcoin Trust IBIT was trading 3.08% higher.
Ethereum-based ETFs also followed suit with Grayscale Ethereum Trust ETHE up by 2.80%, Grayscale Ethereum Mini Trust ETH trading 2.20% higher, Bitwise Ethereum ETF ETHW up by 2.26%, and iShares Ethereum Trust ETF ETHA up by 1.92%.
This recovery follows a significant drop in these ETFs, reflecting the global market downtrends. Bitcoin soared above $56,000 early Tuesday amid a broader market recovery in Asia, as bargain hunters stepped in following Monday’s steep price slide.
Benzinga Pro data indicates that BTC added 6%, marking its highest 24-hour price increase since May, triggering a wider market recovery.
Why It Matters: This recovery comes after a tumultuous period for cryptocurrencies. On Monday, Bitcoin briefly fell below the $50,000 mark for the first time in nearly six months before rebounding. Ethereum also hit a low of $2,160 before recovering.
This market downturn sparked a debate about Bitcoin’s status as a “store of value.” On Mar.12, 2020, infamously known as “Black Thursday,” Bitcoin plummeted by nearly 50%, falling from around $7,900 to below $4,000 in a matter of hours. This crash coincided with a broader market selloff, as the S&P 500 recorded its worst day since 1987, dropping 9.5%.
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This story was generated using Benzinga Neuro and edited by Pooja Rajkumari
Image Via Shutterstock
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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