Bitcoin (BTC-USD) on Tuesday is slipping back under its $20K key level in a backdrop of a broader market downturn and mounting recession fears. Still, crypto-focused stocks are seeing some buying pressure.
The largest digital token by market cap is edging down 0.6% to $19.4K as of shortly before 11:00 a.m. ET. Ethereum (ETH-USD), though, is rising 0.8% to $1.1K over the past 24 hours, as investors brace for its transition to a Proof-of-Stake consensus mechanism from energy-intensive Proof-of-Work.
The relatively slower price action follows bitcoin's (BTC-USD) worst first half half of a year in its 12-year history, dropping 60.3% in H1 2022. Crypto owners remain committed despite the slump in bitcoin and cryptos more broadly.
Some strategists are calling for a near-term bottom in bitcoin (BTC-USD) given its huge drawdown over the past year. Note that “the case for Bitcoin bottom formation is one grounded in observable dominance of strong-hand investors, historically significant lows in numerous macro oscillators, and a strong confluence with prices hovering in striking distance of several bear-market pricing models,” analysts at Glassnode wrote in a note, as quoted by Bloomberg on July 4.
Moreover, Mark Newton, head of Technical Strategy at FSInsight, said in the week ended July 1 that bitcoin (BTC-USD) could bottom out in this month as the weekly and monthly charts point to a possible trend reversal.
While a slew of cryptos are trading slightly lower intraday, crypto-related stocks are mostly rising in a rare dynamic, including Coinbase Global, MicroStrategy, Silvergate Capital , and Riot Blockchain .
Previously, (July 1) El Salvador bought the dip in bitcoin again.