The popular cryptocurrency, Bitcoin, has seen a slight increase in its value, trading around $84,000. This improvement comes after last week's dip below $77,000, approximating the pre-election numbers but falling short of the earlier heights attained today.
This rebound occurs against a backdrop of falling crypto trading volumes, as outlined in a recent note published by Oppenheimer analysts on Tuesday. The report indicated that this decrease in market activity can be attributed to investors feeling uncertain due to trade-related issues, offsetting the positive outlook for the cryptocurrency industry following President Donald Trump's reelection.
Analysts expressed regret at the effect Trump's fluctuating tariffs have had, stirring bear market anxieties, recession fears, and a reduction in retail trading. Yet, they presented a glimmer of positive insight, noting that the consequent pullbacks in Bitcoin and stock such as Coinbase Global (COIN) have not been as drastic as those experienced during the significant downturn in 2022. In that year, Bitcoin ultimately closed with a value below $20,000.
The researchers at Oppenheimer proposed that these findings show a certain maturity and resilience in the asset class.
In related news, several stocks linked to cryptocurrencies were observing reduced trading today. Coinbase, a cryptocurrency exchange, was noted to be down by nearly 3%, while Bitcoin miner, Mara Holdings (MARA), decreased about 2%.