Bitcoin Surges Back Above $59K as Crypto Market Stabilizes After Sharp Decline

Cryptocurrencies are bouncing back after a sharp downturn earlier in the week, with Bitcoin surging past $59,000.

Bitcoin, the leading cryptocurrency, climbed 8% to reach $59,854, successfully reclaiming the crucial $55,000 support level that has been a key threshold throughout the year.

Ethereum, another major player in the crypto space, saw a 6% increase, trading at $2,581. This comes after Ether led the decline in the cryptocurrency market and related stocks on Wednesday. Despite the recent gains, both Bitcoin and Ethereum remain on track for weekly losses. Meanwhile, shares of Coinbase and MicroStrategy also posted a 6% rise.

The market appears to be stabilizing following a steep decline on Monday, which was triggered by the unwinding of the yen carry trade, leading to a deleveraging of markets and a surge in U.S. bond yields amid recession fears. Bitcoin had briefly dipped below $50,000 after nearing $70,000 just a week earlier. Concerns were heightened late last week after the July jobs report fell short of expectations.