Bitcoin and Ethereum ETFs Signal Recovery in Tuesday Premarket Following Monday’s Market Decline – Grayscale Bitcoin Mini Trust (BTC) Units (ARCA:BTC)
Bitcoin (BTC/USD) and Ethereum (ETH/USD) exchange-traded funds (ETFs) are showing signs of recovery post-Monday’s market turmoil, with the top cryptocurrencies beginning to find stability.
Following the recent market upheaval dubbed “Black Monday,” Bitcoin and Ethereum are on an upward trajectory, trading 7.1% and 8.1% higher, respectively. This positive trend is mirrored in ETFs based on Bitcoin and Ethereum.
Currently, Grayscale Bitcoin Trust (GBTC) is up by 3.24%, Fidelity Wise Origin Bitcoin Fund (FBTC) by 2.37%, Bitwise Bitcoin ETF (BITB) by 2.23%, and iShares Bitcoin Trust (IBIT) by 3.08%. Similarly, Ethereum-based ETFs are also on the rise, with Grayscale Ethereum Trust (ETHE) up by 2.80%, Grayscale Ethereum Mini Trust (ETH) trading 2.20% higher, Bitwise Ethereum ETF (ETHW) up by 2.26%, and iShares Ethereum Trust ETF (ETHA) by 1.92%.
This recovery follows a notable decline in these ETFs, reflecting the broader downtrends in the global market. Bitcoin surged above $56,000 early Tuesday amidst a recovery in the Asian market, as investors sought bargains following Monday’s sharp price drop.
Data from Benzinga Pro indicates that Bitcoin saw a 6% increase, its most significant 24-hour price surge since May, triggering a broader market rebound.
The recent market volatility comes after a tumultuous period for cryptocurrencies. On Monday, Bitcoin briefly dipped below the $50,000 mark for the first time in nearly six months before bouncing back. Ethereum also experienced a low of $2,160 before regaining strength.
This downward trend sparked discussions about Bitcoin’s role as a “store of value.” Notably, on Mar. 12, 2020, known as “Black Thursday,” Bitcoin plummeted by almost 50%, dropping from around $7,900 to below $4,000 within hours. This crash coincided with a broader market sell-off, with the S&P 500 registering its worst day since 1987, plunging by 9.5%.
The recent market movements underscore the volatility and challenges faced by cryptocurrencies, with investors closely monitoring these developments for potential opportunities and risks in the digital asset space.
