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Bitcoin prices rebounded on Sunday but remained below $ 50,000, with volatility continuing a weekend of wild trade which caused the cryptocurrency to drop more than 17% in just 24 hours.
The cryptocurrency was trading at $ 48,776 around 7:45 p.m. ET Sunday on Wall Street, according to data from Coin Metrics.
Earlier in the day, the cryptocurrency slid more than 2% as the cryptocurrency struggles to regain the $ 50,000 mark. On Saturday, prices fell to a low of around $ 43,000, down from the $ 57,000 bitcoins traded on Friday morning.
Bitcoin's sharp decline follows Friday's risk tone in the wider market. All three major averages ended Friday trading in the red and posted losses for the week amid fears about what the Covid omicron variant means for the ongoing economic recovery.
Investors ditched stocks in favor of safer areas of the market, and the 10-year US Treasury yield moved lower.
The Nasdaq Composite underperformed the Dow and S&P 500 on Friday, and tech stocks were hit especially hard. This sale spread to cryptocurrencies, without any fundamental reason that would cause sharp falls throughout the cryptocurrency universe.
"It looks like someone probably got a margin call yesterday and was therefore 'forced' to sell," said Matt Maley, equity strategist at Miller Tabak. "The Bitcoin market tends to be much 'thinner' on the weekends so it probably exacerbated the decline. Once the dust settled, the buyer came back and leveled off."
Still, sales for the past 48 hours are based on recent bitcoin crashes. The cryptocurrency officially entered bear market territory on November 26, after falling to a seven-week low of around $ 54,000.
Maley added that where bitcoin stabilized on Sunday, below the $ 50,000 level, is notable given that it is below the trend line from July lows.
"Whether or not it picks up to that level next week (once regular trading resumes) should be important for Bitcoin," he said.
Bitcoin is now almost 30% below its all-time high near $ 69,000, which it reached in early November.
"Bitcoin is in 'no man's land' right now and that doesn't seem to be changing anytime soon," said Ed Moya, senior market analyst at Oanda. "The long-term bullish case remains intact, but prices appear to be on the verge of consolidating between $ 52,000 and $ 60,000," he added.
Ether It also leveled off Sunday, advancing around 1.5% at $ 4,176. On Saturday, the cryptocurrency hit a low near $ 3,500, after falling more than 16% between Friday and Saturday morning. Ether is the second largest cryptocurrency in the world by market value.
- CNBC's Weizhen Tan and Tanaya Macheel contributed reporting.
