## **Bitcoin Rises as Crypto and Other Risk Assets Look to Rebound from Sell-Off**
**Bitcoin** and **cryptocurrencies** are showing signs of recovery after a significant sell-off. This comes as markets, in general, attempt to bounce back. **Bitcoin** surged by **6.5% to $56,626.00** according to Coin Metrics, while **Ether** also climbed, increasing by **5.5% to $2,528.12**.
### **Market Recovery Context**
The recovery wasn't limited to cryptocurrencies. **Crypto stocks** also showed positive signs. **Coinbase** added **1%**, and **MicroStrategy** climbed **2%**. Mining companies like **Marathon Digital** and **Riot Platforms** remained mostly unchanged.
### **Previous Day’s Sell-Off**
The previous day's sell-off was influenced by several factors:
- **Crypto traders** were unwinding their positions.
- **Concerns** about a possible **U.S. economic recession**.
- Growing **tensions** in the **Middle East**.
- Increasing uncertainty about the **U.S. presidential election**.
**Bitcoin** had dipped under **$50,000** briefly, the first time in six months, but managed to recover. This decline had seen **Bitcoin** fall below the **$55,000 floor** that had supported it for much of the year.
### **Investor Sentiments**
Despite these fluctuations, investors remain optimistic about the **long-term prospects** of **Bitcoin**. **Matt Hougan**, Chief Investment Officer of **Bitwise Asset Management**, emphasized that the sell-off presented a **buying opportunity**.
> "We have a global capital market sell-off that impacted the crypto market on a low liquidity weekend, but nothing has changed fundamentally about bitcoin or about crypto," said Hougan. "We're closer to the Fed lowering rates and to quantitative easing, which I see as more of a catalyst than a headwind."
### **Year-to-Date Performance**
For August, **Bitcoin** is down **14%**, and **Ether** is down **22%**. However, for the year, **Bitcoin** is up **32%** and **Ether** has gained **11%**.
### **Conclusion**
The recent bounce back in both **Bitcoin** and **Ether** indicates resilience in the **crypto market** despite external pressures. Investors are seeing current conditions as potentially bullish moving forward.
Stay updated with the latest developments in cryptocurrency and market trends.
