Bitcoin seems to be taking a welcome break for millions of investors.
The price of the most popular cryptocurrency was at $19,516.56 at last check, up 3.4% in about the past 24 hours, according to data firm CoinGecko.
On June 18, Bitcoin had fallen to $17,677.43 before recovering somewhat to $18,290.75. The digital currency then further rebound after billionaire and crypto evangelist Elon Musk tweeted that he was currently buying meme coin Dogecoin.
“I will keep supporting Dogecoin,” Musk wrote on June 19.
“I am,” buying.
The second cryptocurrency by market value, Ether was at $1,050.76 at last check, up about 7% in the last 24 hours. Ether had fallen as low as $881 the previous day, its lowest since January 2021.
Just over 55% of the value of the crypto market, Ether and Bitcoin together often change according to their price. The crypto market as a whole gained 3.7% to $972 billion in the past hour.
The fears of recession are pushing investors to liquidate risky assets. Those involved are Cryptocurrencies and tech group.
“A lot of people in the #crypto industry are saying that this crash is a healthy shake-out,” economist and crypto critic Peter Schiff wrote on Twitter. “I agree that it’s healthy, but not for crypto. That industry as we know it is dead, which is very healthy for the economy. Crypto likely has a future, but #Bitcoin will not be a part of it.”
On June 17, crypto financial services company Babel Finance said it will temporarily suspend redemptions and withdrawals in the latest scandal to the cryptocurrency sector.
“Due to the current situation, Babel Finance is facing unusual liquidity pressures,” the firm said in a statement. “We are in close communication with all related parties on the actions we are taking in order to best protect our customers.”
During this period, the statement continued, “redemptions and withdrawals from Babel Finance products will be temporarily suspended, and resumption of normal service will be notified separately.”
Babel Finance declares itself as “one of the largest service providers to institutions in the crypto financial markets.”
Moya said that Bitcoin plunged “as risk appetite left Wall Street as investors became worried of a much quicker deterioration for the US economy.”
“Surging recession fears are crippling appetite for risky assets and that has crypto traders remaining cautious about buying bitcoin at these lows,” he said.