Bitcoin surged on Monday evening to hit $57,000 after Wall Street recovered from its worst week of the year.
The price of the leading cryptocurrency rose 5.6% to $57,4449.00, according to Coin Metrics. Last week, bitcoin fell 9% in its worst weekly performance since August 2023.
Bitcoin performance over the past five days
In regular trading, Cryptocurrency And Micro strategy rose 5.2% and 9.2%, respectively, on Monday. Those stocks rose as S&P 500 broke a four-day losing streak and Nasdaq Composite up more than 1%. The three major averages posted their worst weekly performance in 2024 last week.
Bitcoin has been trading in a tight range for most of the year. Last week, the price fell below the floor of around $55,000. Analysts have warned that the cryptocurrency currently lacks major catalysts and without them, the price is likely to be sensitive to macro factors and continue to consolidate.
Seasonality is also a factor. For bitcoin, like other risk assets, September has been a historically weak month.
“For bitcoin to rally next week, it is necessary for the US stock market to find stability or positive momentum, which is likely to lead to a decline [crypto] “ETF outflows,” Bitfinex analysts said in a note on Monday. “This relief in the equity markets could help alleviate bitcoin selling pressure, creating a favorable environment for a recovery.”
