Shares of Coinbase and MicroStrategy Gained 6% Each

The market is trying to find its footing after it tumbled on Monday, as the unwinding of the yen carry trade deleveraged markets and U.S. bond yields rallied on fears of a recession.

Coinbase (NASDAQ:COIN) and MicroStrategy (NASDAQ:MSTR) shares both gained 6% each. The broader market attempted to find its footing following a downturn on Monday.

The yen carry trade unwound, which led to a deleveraging of the markets and an increase in U.S. bond yields amid fears of a potential recession.

Bitcoin briefly dropped below the $50,000 level after trading near $70,000 in the previous week.

However, concerns arose towards the end of last week after the weaker-than-expected July jobs report.

"Macro is taking the front seat for the next month or two," said Ryan Rasmussen, an analyst at Bitwise Asset Management. "Everyone is worried about it and when the next shoe will drop, whether it's rising tensions in the Middle East, the yen carry trade implosion or fears of a U.S. recession."

According to Rasmussen, August was always expected to be a month of choppy trading for crypto.

He added that most institutional investors are likely to prioritize their equity portfolios over the 1% to 5% they have allocated to crypto until these concerns subside.

"Multiple forces and reactions are causing a sideways bounce in the crypto market," said Bitcoin IRA CEO Chris Klein. "Crypto continues to feel malaise, mostly from investors taking a wait-and-see approach on whether the Federal Reserve will cut rates and if this correction is just a blip or cause for more concern."

Bitcoin is up 38% for the year.