Bitcoin bounces back after dipping below $30,000

Yahoo Finance Live anchors discuss recent swings in bitcoin.

Video transcript

BRAD SMITH: Also, another red flag that we saw yesterday, Bitcoin having a rough go of it. The cryptocurrency briefly dipping below 30,000 this morning, its lowest trading level in two years. And there, you're taking a look at the move over the past 24 hours as well, and intraday here, continuing to see how it bounces off of what is essentially that low that we would have seen on a down move for Bitcoin over this past year. The last time that we were sitting at around 28,000, we were actually on the rise.

And so that context is particularly important here because that 30,000 psychological marker, that could be exactly where some of the additional institutional investors perhaps take another look at Bitcoin. And we'll see exactly what those inflows do look like, at least at this 30,000, now 31,000 level as well.

BRIAN SOZZI: Yeah, I'm really curious on when Coinbase reports its earnings, I believe, this week. Is that the type of report? We know it's going to likely be bad, but what is the market reaction? Because that might go a long way to signaling some type of short-term bottom here. And it's not just in Bitcoin, it's Ethereum, it's Shiba Inu-- you name it. All of these things have been absolutely slaughtered.

BRAD SMITH: Well, just to add on to that, companies that hold crypto on their balance sheet or act as custodians, they were all down with Bitcoin and Ethereum, the broader crypto space, yesterday. And just how much they've taken a hit on some of those investments is also going to be interesting.

JULIE HYMAN: And now there are going to be margin calls.

BRAD SMITH: Right.

JULIE HYMAN: MicroStrategy, that's something now that investors are watching for. If it falls below a certain basis, a certain cost basis, what are they going to be on the hook for?

BRAD SMITH: Absolutely.