After Bitcoin gave new, keen, investors a first taste of its fammed volatility over the weekend — the price of the coin dropping $10,000 from $41000 to $31,000 — it has almost as quickly rebounded to be posting a price of around $36,000.
Bitcoin has never shied away from being a volatile asset, however, it’s a crash on the level of the latest has not been seen since March of 2020 and in that time many new investors have joined — including institutional ones.
That sudden dip over the weekend did seem to rattle a few of these new investors as they looked to sell off coins bought near the high — but for the more seasoned crypto trader this was a time to accumulate and that accumulation has now transferred into a quick 20 percent recovery.
This recovery could also be powered by news that the banking sector is in some strife as the Covid-19 pandemic continues to affect different areas. As reported by Reuters, major banking institutions in the United States will be hoping to put 2020 firmly behind them when fourth-quarterly numbers are released on Friday.
Financial analysts are expecting a sharp contrast between Bitcoin’s recent fortunes and those of the legacy banking sector, with some anticipating losses of over 40%.
Bitcoin on its way back
Looking at Bitcoin’s movements since the weekend — the major drop of around 25 percent did not last too long as the spot price of Bitcoin jumped from $30,468 to $36,633 in a little over 15 hours leading, representing overnight gains of 20.2%.
This returned a majority of the losses incurred by the coin over the course of the previous weekend when the BTC price plunged from $41,880 down to $30,468.
The broader cryptocurrency market followed suit on Tuesday, as over $150 billion flooded back into the global market cap on the same day.
Banks expecting turmoil
The narrative that Bitcoin is a hedge against the general market conditions continues to grow especially with the latest news on banks coinciding with bitcoin’s recovery.
Citigroup Inc is expected to show a 42% decline for the last three months of the previous year, while analysts predict Wells Fargo & Co will suffer a similar drop of around 39%. Next week Bank of America Corp will release their own quarterly report, which is expected to show a profit decline of 33%.