Bitcoin and Ethereum reverse crypto crash effects; make a quick and fast rebound
Jun 20, 2022, 11:21 IST
- After witnessing a free fall for weeks, Bitcoin gains 16% over the weekend.
- Also, Ethereum gain 20% over the past 24 hours.
- Earlier, global market cap of cryptocurrencies sank below $850 billion.
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After witnessing free fall for weeks, Bitcoin finally managed to rebound past $20,000 per digital coin on Monday, around 16 per cent gain over the weekend.The rally came after Bitcoin, the largest cryptocurrency by market capitalisation, dropped below $18,000 per digital coin on Sunday -- a massive over 70 per cent drop from its record high of $68,000 in November last year -- as mayhem in the crypto market continued.
The global market cap of cryptocurrencies sank below $850 billion, which recently hovered over $1 trillion.
The second-largest cryptocurrency Ethereum also fell below $1,000 on Sunday, down nearly 80 per cent since its all-time-high in November last year.
On Monday, Ethereum also rebounded to reach $1,133, a 20 per cent gain over the past 24 hours.
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Overall, the prices of top cryptocurrencies declined as much as 35 per cent last week in the wake of economic recession fears.
The global market cap of cryptocurrencies sank below $850 billion, which recently hovered over $1 trillion.
According to analysts, Bitcoin may hit a grim $14,000 this year.
The likely bottom range at $14,000 would represent a drop of around 80 per cent for Bitcoin from the $68,000 all-time high.
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According to Coindesk, Bitcoin has historically experienced periods of asymptotic price run-ups followed by steep crashes, "typically played out over several months to two years".Cryptocurrency watchers refer to these periods as "cycles".
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