Digital currency Bitcoin bounced back on Tuesday, rising over 3.5 percent, from a weekend fall.

The world's largest cryptocurrency, in terms of market capitalization, was trading at $50,730.87, up 3.54 percent at 8:31 am (IST) on crypto exchange CoinDesk.

The gains in the crypto market on Tuesday were in line with the recovery seen in the global equity markets as fear of another lockdown eased after reports suggested that Omicron may not spread as much as it was earlier thought.

Bitcoin closed a choppy day on Monday 2.2 percent higher.

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Bitcoin fell as much as 22 percent to just under $42,000 on Saturday on a combination of profit-taking and macro-economic concerns, but rebounded somewhat later in the session.

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Cryptocurrency analysts were not quite sure what triggered the heavy selling. However, they pointed to a plunge in margin borrowing and in fresh futures positions, as well as to activity by large holders of bitcoin as evidence of mass liquidation.

That crash in the cryptocurrency was the biggest since a 31 percent fall in price on May 19. According to cryptocurrency analytics platform Coinglass, bitcoin's market capitalisation fall to nearly $932 billion from $1.25 trillion on October 21.

Earlier, Bitcoin had set a new record high of $69,000 on November 10. Ether, the world's second largest cryptocurrency, was last down 0.3 percent to $4,340. Against its larger peer, ether sat at 0.085 bitcoin, just off Monday's near four-year top.

Asian stocks edged higher on Tuesday on receding worries about the impact of the Omicron variant while Chinese markets gained after the central bank there eased monetary policy.

The US stock markets broadly closed higher on Monday. Stocks on Wall Street closed green as value stocks, led by banks and energy shares, rose 1.5 percent compared to a 0.9 percent gain in growth stocks.

-With agency inputs

(Edited by : Bivekananda Biswas)

First Published:Dec 7, 2021 9:00 AM IST