Bitcoin Rebounds from Worst Week in Over a Year, Surges Above $57,000

Bitcoin jumped back above $57,000 on Monday evening, recovering from its worst week in over a year. The cryptocurrency surged by 5.6%, reaching $57,444, according to Coin Metrics. This follows a 9% decline the previous week, marking its worst performance since August 2023.

Stocks linked to cryptocurrency, such as Coinbase and MicroStrategy, also saw gains of 5.2% and 9.2%, respectively, as the broader market recovered. The S&P 500 snapped a four-day losing streak, and the Nasdaq Composite climbed more than 1%, after suffering their worst weekly performance of 2024.

Bitcoin has remained in a relatively tight trading range throughout the year. Last week, it briefly dipped below the $55,000 mark, a significant floor for the digital currency. Analysts have noted the absence of strong catalysts for Bitcoin, making its price vulnerable to broader macroeconomic factors.

Seasonal trends have also played a role, as September has historically been a weak month for Bitcoin and other risk assets. Analysts at Bitfinex noted that stability in the U.S. equity markets could help Bitcoin recover further by reducing crypto ETF outflows, which have been exerting selling pressure on the cryptocurrency.