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Bitcoin bounces above $62,000, Solana leads cryptocurrencies higher
The next day, cryptocurrencies rose broadly Bitcoin collapsed to below $60,000 for the first time since early May, leading to a large sell-off in crypto assets.
Bitcoin advanced more than 3% on Tuesday to $62,103.90, according to Coin Metrics. The move coincided with a rebound of Nvidia and the Nasdaq Compositewho in the previous session both experienced their worst days since April.
“When the stock market turns, we are likely to see panic selling in the cryptocurrency sector as well, for no fundamental reason other than emotion and perhaps the need to raise money for margin calls,” said Noelle Acheson, economist and author of the book “Crypto is Newsletter “Macro Now.” “Yesterday, cryptocurrencies were hit by some risky asset jitters.”
Solana On Tuesday, however, it was the cryptocurrency market leader. It jumped 8% after the Solana Foundation announced an update that will allow users to share on-chain shares as shareable links around the Internet. The token linked to Chainlink, which provides data feeds on the Solana network, gained 7%.
Ether gained 3% and coins tied to other Ethereum rivals rose broadly. Cardano’s ADA jumped nearly 7%, Polkadot 5%, and Binance Coin 3%.
“Today’s news from Solana is a jolt of positivity. The idea that more than a billion people can now easily access and use SOL is a uniformly positive idea for the alt coin and its ecosystem, and the traders who are by rallying into other alt coins they are likely betting that this momentum will carry over to the broader DeFi and Web3 market,” said Ben Kurland, CEO of cryptocurrency research platform DYOR.
However, he added, “I doubt we’ll see the actual impact of this news for some time, and my money is on a return to the kind of market action we saw earlier this week.”
On the equity front, Coinbase and MicroStrategy rose 4% and 9% respectively.