After experiencing weeks of losses, Bitcoin (BTC) along with Ethereum (ETH) and Ripple (XRP) all rallied to post gains – a development that’s sure to spark the short-term revival hopes for the whole crypto market. For quite some time, cryptocurrencies were struggling against the sell-off pressures and regulatory controls, but the Santa-rally of December seems to have spelled its magic.
Market gain and reason
Bitcoin has seen a jump of more than 10% in its value during the last 24 hours with prices climbing above $3,500 level, as per the data from the Bitstamp exchange. The price hike signals a positive trend that perhaps the worst may be over for the embattled crypto market and could further stimulate the investors to build the future momentum.
The reason behind the market rally remains unclear for now, but experts believe that a continuous fall in digital currencies, which also affected the equity market negatively, have finally led to this price rise. Many investors waited for the market to bottom out though now reflecting on the massive loss of market cap that Crypto market has witnessed in 2018, the prices are now seeing an uptick.
A year of painful losses
Contrasting the current prices of Bitcoin to its value one year ago reveals that 2018 has proved a disaster for the digital coin. In December 2017, Bitcoin was trading over the surreal level of $19,000 though now the same Bitcoin is struggling to stay above the $3,500. Not only the Bitcoin, but all other cryptocurrencies are also down with their collective market capitalization witnessing an erosion of around $700 million. Throughout 2018, investors remained spooked over regulatory crack-down on digital currency as they believe this will hamper the adoption of crypto and limit its trading volumes. Further, the concerns that despite bullish 2017, the institutional investors are shying away from investing in the sector also keep the market on its toes.
Bitcoin, at its present level, is down by 83% from its all-time high value. The scenario is no different for the Ethereum and XRP, both of which have recorded similar losses during the past months. The market rally today, however, added $13 billion to the market cap with a total value of cryptocurrencies now rising to $115 billion.
The major Bitcoin mayhem started in November last month when Bitcoin miners and its cash developers engaged in a civil war, causing panic among the investors who rush to bail their position out. This set off a chain of sell-off, resulting in wiping the billions off from the market capitalization of digital currency.
The spurt in the Bitcoin prices is sure to bring relief for crypto faithful and enthusiasts, who were trying hard to remain positive on the crypto prospects even amidst the consecutive months of decline. Many of the Bitcoin bulls were assuring the investors that they had enough money to stay put with the market condition even as many of them started to adopt various cost-cutting measures. Even the top bosses of Bitcoin came out to reassure the investors, with Chief Executive of Bitpay, Stephen Pair, projecting that within a period of three to five years, digital currencies will be widely used for business and market transactions. Also, the CEO of Fintec Startup Circle Jeremy Allaire estimated that after the recent price decrease, Bitcoin and Ethereum seem to be oversold, thereby, sparking hope of further gains in future.