Bitcoin, Ethereum ETFs Show Signs Of Recovery In Tuesday Premarket After Monday's Market Crash

Author: Benzinga Neuro | August 06, 2024 07:01am

Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) linked exchange-traded funds (ETFs) are demonstrating signs of recovery in the wake of Monday’s market meltdown, as the leading cryptocurrencies begin to stabilize.

What Happened: Bitcoin and Ethereum were showing signs of recovery after the “Black Monday,” with coins trading at 7.1% and 8.1% higher respectively. This improvement was mirrored in Bitcoin and Ethereum-based ETFs.

At the time of writing, Grayscale Bitcoin Trust (NYSE:GBTC) was up by 3.24%, Fidelity Wise Origin Bitcoin Fund (BATS:FBTC) by 2.37%, Bitwise Bitcoin ETF (NYSE:BITB) was trading 2.23% higher, and iShares Bitcoin Trust (NASDAQ:IBIT) was trading 3.08% higher.

Ethereum-based ETFs also followed suit with Grayscale Ethereum Trust (NYSE:ETHE) up by 2.80%, Grayscale Ethereum Mini Trust (NYSE:ETH) trading 2.20% higher, Bitwise Ethereum ETF (NYSE:ETHW) up by 2.26%, and iShares Ethereum Trust ETF (NASDAQ:ETHA) up by 1.92%.

This recovery follows a significant drop in these ETFs, reflecting the global market downtrends. Bitcoin soared above $56,000 early Tuesday amid a broader market recovery in Asia, as bargain hunters stepped in following Monday’s steep price slide.

See Also: Bitcoin, Ethereum, Dogecoin See Bloodbath, Liquidations Cross $1B: -25% In 10 Days Happened 45 Times Since 2015—What’s Next?

Benzinga Pro data indicates that BTC added 6%, marking its highest 24-hour price increase since May, triggering a wider market recovery.

Why It Matters: This recovery comes after a tumultuous period for cryptocurrencies. On Monday, Bitcoin briefly fell below the $50,000 mark for the first time in nearly six months before rebounding. Ethereum also hit a low of $2,160 before recovering.

This market downturn sparked a debate about Bitcoin’s status as a “store of value.” On Mar.12, 2020, infamously known as “Black Thursday,” Bitcoin plummeted by nearly 50%, falling from around $7,900 to below $4,000 in a matter of hours. This crash coincided with a broader market selloff, as the S&P 500 recorded its worst day since 1987, dropping 9.5%.

Read Next:

• Bitcoin, Ethereum, Dogecoin Mirror Stock Market Rout — Major Coins Crash As Recession, War Fears Grip Investors: Analyst Says Aug, Sept ‘Worst Months’ for King Crypto But Oct Raises Hopes

This story was generated using Benzinga Neuro and edited by Pooja Rajkumari

Image Via Shutterstock

Posted In: $BTC $ETH BITB BTC ETH ETHA ETHE ETHW FBTC GBTC IBIT