Bitcoin price stabilizes around $56k after rebounding, but momentum slows

From Investing.com: August 7, 2024, 1:59 AM:

Bitcoin price rebounded from five-month lows, rising 1.9% to $56,952.4 amid improved sentiment but showing signs of slowing down. Concerns over U.S. recession, Japanese rate hikes, and Middle East tensions continue to weigh on the market.

Gains in Bitcoin slowed after a 4% rebound, still trading below pre-rout levels. Risk-off sentiment led to outflows in crypto derivatives, with prospects of a U.S. government sale and waning interest affecting the market. Optimism over U.S. regulatory environment also decreased with 2024 presidential race developments.

IMF made progress in talks with El Salvador, but Bitcoin adoption remains a point of contention. Preliminary understandings on economy improvement were reached, with discussions on policies supported by the IMF. Negotiations will focus on mitigating risks from El Salvador’s adoption of Bitcoin as legal tender and infrastructure plans.

Altcoins showed mixed performance as broader crypto recovery lost momentum. Ethereum dropped by 0.7% to $2,504.90, while XRP fell by 0.4%. Dogecoin and Shiba Inu rose by 1.3% and 7.2%, respectively. Among meme tokens, SafeMoon fell by 0.9% and Floki Inu lost 1.4%.

Read more at Investing.com: steadies at $56k as rebound slows By Investing.com