Cryptocurrencies rose broadly, a day after bitcoin slumped to under $60,000 for the first time since early May, leading to a broad sell-off in crypto assets.
Bitcoin advanced more than 2% on Tuesday to $61,345.22, according to Coin Metrics. The move coincided with a rebound in Nvidia and the Nasdaq Composite, both of which in the previous session suffered their worst days since April.
“When the stock market turns, we are likely to see panic selling in crypto as well, for no fundamental reason other than emotion and perhaps the need to raise cash for margin calls,” said Noelle Acheson, economist and author of the “Crypto is Macro Now” newsletter. “Yesterday, crypto got hit with some risk asset jitters.”
Solana was the crypto market leader on Tuesday, however. It jumped 8% after the Solana Foundation announced an update that will allow users to share on-chain actions as shareable links around the internet. The token tied to Chainlink, which provides data feeds on the Solana network, gained 7%.
Ether gained 2% and coins linked to other Ethereum rivals rose broadly. Cardano’s ADA jumped more than 6%, Polkadot advanced 5% and Binance Coin rose 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 one that is uniformly positive for the alt coin and its ecosystem, and traders rallying into other alt coins are likely betting that this momentum will carry over into the broader DeFi and Web3 marketplace,” said Ben Kurland, CEO at crypto research platform DYOR.
However, he added, “I doubt we see the actual impact of this news for some time, and my money is on us heading back towards the type of market action we saw earlier this week.”