Cryptocurrencies Rose Broadly, a Day After Bitcoin Slumped to Under $60,000 for the First Time Since Early May

Bitcoin advanced more than 3% on Tuesday to $61,741.78, according to Coin Metrics. The move coincided with a rebound in Nvidia and the Nasdaq Composite

Bitcoin price rose sharply on Tuesday, recovering from a slide that took the cryptocurrency to below $60,000 for the first time since early May and led to a broad sell-off in crypto assets.

The world’s largest cryptocurrency by market value advanced more than 3% to $61,741.78 at the last check, according to Coin Metrics.

The move coincided with a rebound in Nvidia and the Nasdaq Composite, both of which suffered their worst days since April in the previous session.

“When the stock market turns, we are likely to see panic selling in crypto as well, for no fundamental reason other than emotion and perhaps the need to raise cash for margin calls,” Noelle Acheson, an economist and author of the "Crypto is Macro Now" newsletter, told CNBC.

“Yesterday, crypto got hit with some risk asset jitters.”

Solana led the gainers among major cryptocurrencies on Tuesday, however. It jumped 8% after the Solana Foundation announced an update that will allow users to share on-chain actions as shareable links around the internet.

The token tied to Chainlink, which provides data feeds on the Solana network, gained 7%.

Among other coins, those linked to other Ethereum rivals rose broadly. Cardano’s ADA gained more than 6%, Polkadot jumped 5% and Binance Coin rose 3%.

“Today’s news from Solana is a jolt of positivity,” Ben Kurland, CEO at crypto research platform DYOR, told CNBC.

“The idea that more than a billion people can now easily access and use SOL is one that is uniformly positive for the alt coin and its ecosystem, and traders rallying into other alt coins are likely betting that this momentum will carry over into the broader DeFi and Web3 marketplace.”

However, he added, "I doubt we see the actual impact of this news for some time, and my money is on us heading back towards the type of market action we saw earlier this week."

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