Bitcoin rebounds after facing its toughest week in over a year, crosses $57,000 mark.

Bitcoin managed to hold its ground on Tuesday after a swift recovery on Monday from Wall Street’s roughest week in 2024. The primary cryptocurrency’s price surged by 1.8% to $57,950, following a notable 6% jump on Monday night as reported by Coin Metrics. Bitcoin took a hit last week, experiencing a 9% decline, marking its most significant weekly drop since August 2023.

Analysts have cautioned that bitcoin is currently lacking significant driving forces, making its price vulnerable to macroeconomic factors and ongoing consolidation. Adding to the complexity, September typically emerges as a weak month for bitcoin and other risky assets.

Looking ahead, the upcoming U.S. presidential election is viewed as a crucial catalyst for bitcoin’s future trajectory. Throughout much of this year, bitcoin has been fluctuating within the $55,000 to $70,000 range after hitting an all-time high back in March. Bernstein analysts suggest that whether it’s the re-election of former President Donald Trump or a win for Vice President Kamala Harris, the election outcome could have a substantial impact on bitcoin’s value.

Cryptocurrency Performance Snapshot

Reflecting on the recent market movements, platforms like Coinbase and MicroStrategy saw minor fluctuations this Tuesday. Both entities witnessed notable gains on Monday, with Coinbase up by 5.2% and MicroStrategy soaring by 9.2%. These positive shifts coincided with the S&P 500 breaking a four-day losing streak and the Nasdaq Composite registering over a 1% gain. The previous week marked the weakest weekly performance for the three major averages in 2024.

To possibly spur an uptick in the upcoming weeks, Bitfinex analysts highlighted the importance of U.S. equity markets finding stability or positive momentum. Such developments could lead to reduced ETF outflows in the crypto space, potentially easing the downward pressure on bitcoin and paving the way for a recovery.