Bitcoin is recovering from the dramatic sell-off over the weekend

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Bitcoin rose more than 2% against the US dollar around Monday afternoon, trading around $ 55,230 a coin.

The weekend plunge was a rather dramatic end to a month-long rally that last week culminated in Coinbase’s massive initial public offering, which valued the cyrpto stock exchange at nearly $ 100 billion. Coinbase shares opened lower on Monday and traded 1.8% lower around noon.

Bitcoin was down because “some countries, such as Turkey, were making a noise about banning Bitcoin as a payment method as well as talking about further investigation by the US Treasury,” said Brad Bechtel, global head of FX at Jefferies.

The crypto market is also getting busier: China is creating a digital yuan and toying with the idea of ​​rolling out the currency at the 2022 Winter Olympics in Beijing. Meanwhile, the Bank of England announced the creation of a Central Bank Digital Currency and a task force to investigate its use.

“Big Tech is also developing their own versions of cryptocurrencies,” Action Economics analysts said in a note to clients. “All of this represents significant future competition for bitcoin, for example.”

At the same time, the cryptocurrency still has a lot of bullish backers.

“We don’t think any of these factors will change the fundamental story for Bitcoin, which still appears to be supported by limited supply and wider adoption by institutional and retail investors,” wrote Win Thin, global head of currency strategy at Brown Brothers Harriman. in a note.

The US dollar index also fell on Monday, with the greenback falling 0.5% against a basket of its rivals.

Elsewhere in the market, stocks are flashing red after last week’s string of record highs for the Dow INAPPROPRIATE and the S&P 500 SPX
The Dow fell 0.5% around noon, or more than 170 points. The S&P fell 0.7%, and the Nasdaq Composite COMP traded 1.3% lower.

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