Bitcoin, the largest cryptocurrency globally, saw its market cap increase to $1.923 trillion. Bitcoin's dominance stands at 56.99%, as per CoinMarketCap. However, BTC trading volume in the last 24 hours dropped by 23.

Fundstrat's Tom Lee told CNBC's "Squawk Box" Monday that bitcoin could correct to $70,000 before breaking to new records and eventually end the year between $200,000 and $250,000. Crypto traders are accustomed to steep drawdowns in bitcoin during a bull market.

Bitcoin was rising marginally but remained below $100,000 following a retracement from last month's record high. "Discretion may be the better part of valour in digital assets over the next week or so,

Positive economic data, including last week’s jobs report, and bond market activity, is putting downward pressure on the risky cryptocurrency market.

Bitcoin shot back to $97,044 on Tuesday, climbing 4.5% in a single day after plunging below $90,000 earlier in the week. The broader crypto market followed suit, with the CoinDesk 20 index rising 3.9%.