Bitcoin saw a modest 5% uptick on Tuesday, a glimmer of hope after enduring its worst week since the collapse of Sam Bankman-Fried’s FTX exchange in November 2022.
The world’s largest cryptocurrency plummeted 20% over the past week, reaching its lowest levels early Monday.
The broader financial market correction amplified this decline, with Bitcoin briefly dipping below $50,000—a nadir not seen since February. Over the past seven days, it shed more than $13,000 in value.
Ether (ETH-USD), the second-largest cryptocurrency, fared even worse, dropping 27% in the same period and experiencing its largest single-day decline since late 2021.
This crypto downturn came on the heels of renewed optimism among business investors. Just two weeks ago, Bitcoin was nearing its all-time high of $74,000, set in March. The excitement was partly fueled by former President Donald Trump’s scheduled appearance at a Bitcoin conference in Nashville, which many saw as a potential sign of a more favorable regulatory environment from Washington, D.C., in the near future.
Adding to the bullish sentiment, the Securities and Exchange Commission had recently approved new exchange-traded funds (ETFs) for major money managers to hold ether. This development was seen as Wall Street’s growing embrace of cryptocurrencies, potentially making ether a fixture in 401(k)s, IRAs, and pension plans, thus paving the way for more mainstream acceptance.
Despite the recent setbacks, these developments underscore the dynamic nature of the cryptocurrency market, where regulatory signals and institutional adoption continue to play pivotal roles.
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