Bitcoin regains $59,000 as cryptocurrencies recover.

Bitcoin regained $59,000, signaling a rebound for cryptocurrencies following a significant decline earlier in the week.

The flagship cryptocurrency reached a new high of $59,385.40, an 8% increase from its previous price, according to Coin Metrics. This marks the first time the cryptocurrency has surpassed the $55,000 support level this year.

After leading declines in cryptocurrencies and related stocks Wednesday, Ether advanced 6% to $2,492.28. However, both coins are still on pace for weekly losses.

Shares of Coinbase and MicroStrategy gained 6% each.

After the market tumbled on Monday, the unwinding of the yen carry trade deleveraged markets and U.S. bond yields rallied on fears of a recession. Bitcoin briefly fell below $50,000 after trading near $70,000 in the week prior. Worries kicked in late last week, following the weaker-than-anticipated July jobs report.

"Ryan Rasmussen, an analyst at Bitwise Asset Management, stated that macro is currently the focus for the next month or two, with concerns ranging from the Middle East tensions to the yen carry trade collapse and the possibility of a U.S. recession."

Rasmussen stated that August was always anticipated to be a volatile month for crypto trading. Until these concerns dissipate, most institutional investors are likely to prioritize their equity portfolios over the 1% to 5% they have allocated to crypto.

"The crypto market is experiencing a sideways bounce due to multiple forces and reactions, according to Bitcoin IRA CEO Chris Klein. Crypto is feeling malaise, with investors taking a wait-and-see approach on whether the Federal Reserve will cut rates and if this correction is just a blip or a cause for more concern."

Bitcoin is up 38% for the year.