Bitcoin Price Recovers After Briefly Crashing Below $30,000
Bitcoin price rebounded from a swoon below $30,000 as a selloff in stocks eased and a bout of calm washed across global markets.
The world’s largest digital token added as much as 5.4% on Tuesday and traded at $31,904 at 10:15 a.m in London. Ether at one point climbed 6.4%, while coins like Solana and Avalanche were also in the green. The crypto recovery came as equities advanced across Europe, highlighting how the two asset classes are trading in tandem.
Bitcoin’s recent plunge has taken it to levels last seen in the middle of 2021, reversing a bull market that peaked in November. Whether the calm will last is an open question. Tightening monetary policy to combat runaway inflation is curbing liquidity, creating a formidable obstacle for speculative assets like cryptocurrencies.
Michael Novogratz, the billionaire cryptocurrency investor who leads Galaxy Digital Holdings Ltd., warned that he expects things to get worse before they get better. Among challenges facing digital assets is that they’re increasingly trading in line with technology stocks, which are getting hammered by rising interest rates.
“Crypto probably trades correlated to the Nasdaq until we hit a new equilibrium,” Novogratz said on Galaxy’s first-quarter earnings call on Monday, adding that investors may see “a very choppy, volatile and difficult market for at least the next few quarters before people are getting some sense that we’re at an equilibrium.”
The crypto market is also monitoring TerraUSD, an algorithmic stablecoin that aims to maintain a one-to-one peg to the dollar. The peg appeared to fray, with the token’s value falling close to 60 U.S. cents before climbing back above 90 cents on Tuesday.
Do Kwon, the founder of Terraform Labs, which powers
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