Cryptocurrencies resume their rebound, bitcoin retakes $59,000

Cryptocurrencies resumed their rebound from their big sell-off earlier in the week, with bitcoin retaking $59,000.

The price of the flagship cryptocurrency was last higher by 8% at $59,385.40, according to Coin Metrics, rising above the $55,000 floor that has supported it for much of this year.

Ether advanced 6% to $2,492.28, after leading declines in cryptocurrencies and related stocks Wednesday. Both coins are still on pace for weekly losses.

Shares of Coinbase and MicroStrategy gained 6% each.

The market is trying to find its footing after it tumbled on Monday, as the unwinding of the yen carry trade deleveraged markets and U.S. bond yields rallied on fears of a recession. Bitcoin briefly fell below $50,000 after trading near $70,000 in the week prior. Worries kicked in late last week, however, following the weaker-than-anticipated July jobs report.

“Macro is taking the front seat for the next month or two,” said Ryan Rasmussen, an analyst at Bitwise Asset Management. “From rising tensions in the Middle East to the implosion of the yen carry trade to the fear of a recession in the U.S., everyone is worried about it and when the next shoe will drop.”

August was always expected to be a month or choppy trading for crypto. Until these worries subside, Rasmussen said, most institutional investors are likely to prioritize their equity portfolios over the 1% to 5% they have allocated to crypto.

“Multiple forces and reactions are causing a sideways bounce in the crypto market, said Bitcoin IRA CEO Chris Klein. “Crypto continues to feel malaise, mostly from investors taking a wait-and-see approach on whether the Federal Reserve will cut rates and if this correction is just a blip or cause for more concern.”

Bitcoin is up 38% for the year.