2 years ago
129 On May 12, 2021, Bitcoin (BTC) gained 4.3% as cryptos recovered losses despite increasing turmoil affecting the global stock markets.
BTC/USD 1-hour candle chart (Bitstamp). Source: Tradingview
Data acquired from Tradingview showed BTC/USD recovering almost all of the previous day’s losses to peak at $57,500. However, it has since retreated to trade above $56,600 at the time of writing.
This move came amid fears over froth in the tech stocks, caused by issues in Taiwan that saw the country’s equities index post its biggest one-day loss in history. Bitcoin and the altcoins had sold off with the tech stocks appearing to be the hardest hit earlier in the week. However, the latest macro dip failed to worsen their performance.
Conversely, as it has now become a hallmark trait of an increasingly asymmetrical market, a majority of the cryptos bucked the trend and returned to the winning way. One popular Twitter commentator Rekt Capital summarized:
“BTC is bouncing here and Altcoins are recovering strongly.”
Rekt published as the United States Federal Reserve buoyed the cryptocurrency cause by refusing to agree that economic inventions may be lessened. In the past, fears had come up that Bitcoin might eventually fall through $50,000 under the current conditions, which opened up the path to drop to as low as $40,000.
Ethereum Reaches All-Time Highs
In the meantime, in what seems to be a continuation of “alt season 2.0,” Ether (ETH) led gains once more, touching new all-time highs while maintaining support at $4,000. Nevertheless, gas fees remain a headache for traders and Ethereum network users.
The new all-time highs for the biggest altcoin combine with fresh bullishness across the crypto sector after the latest sell-off.
ETH/USD 1-hour candle chart (Bitstamp). Source: Tradingview
Other altcoins also challenged record highs, among them Cardano (ADA) that at the time of publication was just three cents away from all-time highs of $1.83.
Amid growing controversy over meme coins, Dogecoin (DOGE) was flat, while the “tribute” coin Shiba Inu (SHIB) lost 23% to drop out of the top-20 cryptos by market cap. Weekly gains for the coin still stand at around 1500%.
