Bitcoin (BTC) is up around 22% from its Saturday low of $17,593 and is hovering around $21,500.
After a weekend where bitcoin saw $7.3 billion in realized losses, the largest cryptocurrency erased all of the weekend’s losses and was recently up almost 7% in the past 24 hours at $21,206.
“This recovery takes away some of the extremely oversold nature of the cryptocurrency,” said Alex Kuptsikevich, senior market analyst at FxPro. “Yet it will be too early to speak of a long-term reversal: All the negative fundamentals remain. Until abrupt monetary policy tightening becomes the norm, financial market pressures can quickly undo cryptocurrency rallies. »
Despite small rallies in traditional markets following the June 19 holiday closure on Monday, Craig Erlam, senior market analyst for Oanda, advises against resting on your laurels too much.
“Everyone is looking for the bottom, but there is a huge cloud of uncertainty over the outlook and the data is not yet showing encouraging signs,” Erlam wrote in a newsletter. “Recession is increasingly becoming the base case scenario, so equities are vulnerable to further losses.
Tuttle Capital Management CEO and Chief Investment Officer Matthew Tuttle also noted bitcoin’s correlation to stock markets and said, “The stock market really stinks. »
“Stocks are in a bear market,” Tuttle said. “I can’t imagine bitcoin going back to $60,000 while stocks are still selling.”
The S&P 500 was recently up 2.61%, and the Nasdaq 2.5%.
Ether (ETH) is up 5.5% in the past 24 hours, trading at $1,148.