There had been concerns that a plunge below $40,000 would cause sell-offs to escalate, inflicting further misery on crypto investors.
Bitcoin came perilously close to falling below $40,000 this weekend, but has managed to bounce back from this psychologically significant level.
Trading at $42,027 at the time of writing on Monday morning, the world's biggest cryptocurrency had suffered six consecutive days of losses.
There had been concerns that a plunge below $40,000 would cause sell-offs to escalate, inflicting further misery on crypto investors.
Market jitters have been heightened by news that the Federal Reserve is planning to hike interest rates even faster than initially planned.
Despite the fact that we're only 10 days into January, BTC has already plunged by 9.25% — a stark contrast to the gains of 14.51% and 29.95% seen in 2021 and 2020 respectively.
Volatility in recent days has also been fueled by unrest in Kazakhstan, the world's second-largest hub for Bitcoin mining.
Amid violent and deadly protests on the streets, an internet blackout caused a significant chunk of BTC's computing power to fall offline.
The Crypto Fear and Index is currently at a score of 23 — Extreme Fear — with negative sentiment gripping investors for weeks on end.
Zooming out, the total market cap of all cryptocurrencies remains stubbornly below $2 trillion.
Generally speaking, altcoins have performed far worse on a weekly timeframe than BTC, which has fallen by 10.7% over the past seven days. Ether is down 17%, Binance Coin by 16%, and Solana by 17.4%.
