The price of Bitcoin increases slightly as other risk assets, including cryptocurrencies, attempt to recover from their recent decline.

On Tuesday, cryptocurrencies regained some of their lost value after briefly dipping below $50,000 for the first time in six months.

The price of the flagship cryptocurrency rose more than 2% to $2,457.73, according to Coin Metrics.

Premarket trading saw all stocks, including those linked to the price of bitcoin, mining companies, and others, increase by approximately 2%.

Crypto traders experienced a sell-off as carry traders unwound their positions, concerns about a U.S. economic recession intensified, tensions in the Middle East escalated, and uncertainty about the U.S. presidential election outcome grew.

Bitcoin remained below the $55,000 support level for most of the day, as it struggled to regain its March highs. Despite this, investors maintain that the long-term case for holding bitcoin remains unchanged, and it is a buying opportunity, according to Matt Hougan, chief investment officer of Bitwise Asset Management.

"The global capital market sell-off affected the crypto market on a low liquidity weekend, but nothing has fundamentally changed about bitcoin or crypto except that we're closer to the Fed lowering rates and quantitative easing. This is seen as a catalyst rather than a headwind, according to the speaker."

In August, bitcoin and ether experienced a 16% and 25% decline, respectively, but for the year, they have both increased by 29% and 7%, respectively.