On Monday, the market held out hope that the shakeout of the past few weeks is nearing its end, as the price of the virtual currency hit its highest level in more than a month.
At 6:30 a.m., the world's largest coin was selling for $22,220.80. According to data from coinDesk, it is up 4%. It was the highest price since June 16 in the past 24 hours.
The price of ether went up more than 10% and the MATIC token went up more than 20%.
The stock markets in Europe and Asia had a good day. Stock futures were higher. The correlation between equity market trade and Cryptocurrencies is very strong. Sentiment in the market can be lifted by a rise in stock prices.
The carnage over the last few weeks, which has wiped out billions of dollars from the market, is being watched by investors to see if it's over.
Three Arrows Capital and Celsius, two high-profile companies in the space, have both filed for bankruptcy because of the crash.
The collapses have caused a domino effect across the industry.
Huge amounts of leverage and borrowing have caused a lot of this. It was not possible for Three Arrows Capital to pay back the loans it had taken out. Celsius, which offered customers yields over 18% for depositing their digital coins, took on high risk trading to try to give back to its users.
The broader market has been put under pressure by the sale of assets by the cryptocurrencies.
According to analysts, there are signs that this may be slowing.
Most of the forced selling behind us has likely ended the worst of market contagion.
The market is still not doing well. The price of ether is down more than half this year. The second quarter was the worst in more than a decade for the digital currency.
Analysts don't think there will be a big move higher in the near term.
It is unsurprising that a relief bounce has taken place. The market is expected to range-bound over the next few months.
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