The market is green again. After some very brutal two weeks, the market has begun to recover, led by the crypto king, Bitcoin. The currency gained 13 percent in the past 24 hours to reclaim the $4,000 level, and then some more. At press time, Bitcoin was trading at $4,221, with the momentum looking likely to push ahead. After trading below $3,700 just a day ago, the currency gained 13 percent to recover $10 billion in market value in less than 24 hours. As always, Bitcoin brought along his friends to the party, with Ethereum, XRP, Stellar and Litecoin all gaining double figures. Litecoin was the biggest gainer in the top 10 and regained the seventh position, overtaking Tether.
Is This The Break At Last?
On November 25, Bitcoin hit its lowest for the year at $3,500, sinking even lower on some markets such as Bitstamp and Kraken. The currency has shown signs of recovery since then, but the rallies have been shortlived. Its best price rally since then was on November 26 when it hit $4,050. However, the crypto seems to have rediscovered its momentum.
In the past 24 hours, Bitcoin gained 13.1 percent to hit the $4,200 level for the first time in the past four days. On Bitfinex, Bitcoin was trading at $4,297, with the exchange accounting for the fourth-highest daily trading volume. Other markets on which it was doing quite well include HitBTC, Huobi, ZB.com and Digifinex.
The trading volume was also encouraging, with the 24-hour figure standing at $6.6 billion. As has been the trend, BitMEX accounted for the highest stake at 29 percent. Bitcoin’s price on BitMEX stood at $4,159 at press time.
The momentum also saw the currency regain $10 billion in market cap in less than 24 hours. Its market cap stands at $73.3 billion and accounts for 53.4 percent of the total market cap of the crypto industry. As we reported yesterday, its dominance has been on the rise, partly due to altcoins dropping more and partly because investors have looked at buying it while the price is still ‘affordable’.
While the driving force behind the momentum is rather difficult to pinpoint, Elizabeth Schulze believes that ultimately the currency’s rise relies on its users’ belief. Schulze, who is the technology correspondent at CNBC, stated that if the crypto community expects to attract other investors, especially institutional, it will have to first show unwavering belief in cryptos.
Cryptos were also given a positive nod by the chief economic adviser for global investment giant Allianz, Mohamed El-Erian. Speaking during the Consensus conference held in New York, he stated that he believes despite the slump this year, cryptos are here to stay. The entry of institutional investors is a positive sign, especially since retail investors have shied off, he stated.
We are seeing a rotation going on – retail is becoming more reasonable if you like. The exuberance is behind us, and institutions are starting to establish a foothold and that’s good long-term.
Other cryptos were not left behind by the green wave, with XRP gaining 11 percent to recover $1.7 billion in market cap. Ethereum gained 13 percent, Stellar gained 17 percent and EOS gained 9 percent. Litecoin at 18 percent was the highest gainer in the top 10 and this helped it regain the seventh position which it had lost to Tether. It also put a safe distance from Bitcoin SV at ninth which almost overtook it yesterday, needing only $3 million to do so. Monero was also able to jump back into the top 10 after displacing Cardano thanks to a 17 percent rise. However, the gap is still very small with only $4 million separating the two.