Cryptocurrencies rebounded broadly the day after bitcoin dropped below $60,000 for the first time since early May, triggering a sell-off across crypto assets.
Bitcoin rose over 3% on Tuesday to $62,103.90, as reported by Coin Metrics. This rise coincided with Nvidia and the Nasdaq Composite recovering after their worst sessions since April.
"When the stock market shifts, we usually see panic selling in crypto as well, driven more by emotion and the need to cover margin calls than by fundamentals," noted economist Noelle Acheson, author of the “Crypto is Macro Now” newsletter. "Yesterday, crypto faced some nervousness around risk assets."
Leading the crypto market on Tuesday was Solana, which surged 8% following an announcement by the Solana Foundation about an update enabling users to share on-chain actions as links across the internet. The token associated with Chainlink, which provides data feeds on Solana's network, also gained 7%.
Ether saw a 3% increase, and coins connected to other Ethereum competitors experienced broad gains. Cardano’s ADA surged nearly 7%, Polkadot rose 5%, and Binance Coin climbed 3%.
"Today's update from Solana is a positive surprise. The ability for over a billion people to easily access and utilize SOL is universally beneficial for the altcoin and its ecosystem. Traders are betting that this momentum will extend into the broader DeFi and Web3 marketplaces," said Ben Kurland, CEO of crypto research platform DYOR.
However, Kurland cautioned, "The real impact of this news may take some time to materialize, and I anticipate a return to the market dynamics we saw earlier this week."
In stock markets, Coinbase and MicroStrategy saw gains of 4% and 9%, respectively.
