Bitcoin recovers from a rocky weekend

Bitcoin rose on Monday after falling below its 2017 high. Investors were on edge due to a spate of negative cryptocurrency stories and macro issues that kept sentiment under pressure.

The most part of Monday saw the world's largest cryptocurrency by market capitalization soar past the $20,000 threshold. According to Coin Metrics, it fell by less than 1% to $20,005.46 at the end of the day. Bitcoin plummeted to a low of $17,601.58 during the weekend. Meanwhile, the price of ether increased by less than 1% to $1,102.86, according to CNBC.

While the recovery will be welcomed by investors, bitcoin remains 70% behind its all-time high set in November. It's down 57 percent so far this year.

Bitcoin has been unable to sustain a compelling price over $20,000, prompting industry observers to predict that the surge would be short-lived.

"Unless the price of bitcoin closes above $23,000 on a daily time frame basis the odds are this is a dead cat bounce," Vijay Ayyar, vice president of corporate development and international at crypto exchange Luno, told CNBC.

In recent weeks, the broader crypto market has been beset by a slew of problems, starting with the fall of stablecoin terra USD and its related token luna.

The spotlight has now shifted to cryptocurrency loan organizations that offer customers large returns in exchange for investing their crypto tokens. Celsius, a corporation with 1.7 million members and roughly $12 billion in crypto assets under control, suspended customer withdrawals last week, raising suspicions of bankruptcy.

In the midst of the market collapse, some crypto firms have declared massive layoffs. Coinbase, a cryptocurrency wallet and exchange, said this week that it will lay off 18 percent of its full-time employees. BlockFi, a lending company, said this week that it will lay off a quarter of its employees.

The market is also being weighed down by macroeconomic issues such as increasing inflation and impending rate rises by the US Federal Reserve. Given the sharp drop in cryptocurrency values in recent weeks, several analysts believe the market is nearing a bottom.

"We're close to a point where some of the real excess leverage has now been driven out of the system and a bottom can begin to form," Giles Keating, director of Bitcoin Suisse, said on CNBC's "Squawk Box Europe" on Monday.

The term "leverage" pertains to trading whereby investors make trades with borrowed funds. This means that with less initial investment, investors may have a greater exposure to holdings. However, because it needs investors to guarantee they have sufficient cash to fulfill the margin requirements, this is viewed as a risky kind of trading. Failure to do so will automatically terminate their position. These liquidations are thought to be a major role in market movements.

If bitcoin continues to drop, a lot of Bitcoin investors may need two jobs to survive it and they'll also need a recession-proof job.