In the last 24-hours, Bitcoin made a run for the $40,000 mark following weekend lows of $39,000. On Monday, BTC was at its lowest point since mid-March but saw a quick recovery.
At the time of writing this article, the popular crypto was up by 3.36%. According to CoinMarketCap, Bitcoin was trading at $40,517. Daniel Khoo, a research analyst at Nansen, says recent volatility has been driven by factors such as inflation, the Russian invasion of Ukraine, and contractionary monetary policies. This has affected the stock market and the crypto market alike. Analysts observed that the crypto market has been in tandem with the stock market.
Khoo highlighted that the fall in prices could be driven by short-term negative sentiment as people go risk-off on volatile assets. Investors are also shifting towards stablecoins because of the uncertainty and short-term bearish outlook. Khoo believes the market has become too hot and periods of extreme euphoria were historically followed by market corrections. Whalemap, an on-chain data firm, says the current correction is not over and a generational bottom is on the horizon. It said these events tend to be very profitable for investors.
Meanwhile, Ether is up by 4.50%. The world’s second most popular crypto is trading at $3,000. Of the altcoins, Dogecoin is the biggest gainer. The meme coin has seen its price go up by 20.67% in the last 24-hours. Terra LUNA has gained 5.66%, Solana is up by 3.54%, and Cardano by 2.04%. The overall crypto market has recorded gains.