Bitcoin bounces back after major sell-offs
Cryptocurrencies, after struggling against major sell-offs, have bounced back ahead of Christmas with Bitcoin breaking past $3900 levels on Wednesday.
Cryptocurrency markets continued their recent rally, with Bitcoin hitting as high as $3900 on Wednesday in a move that helped drag rival coins higher.
The rebound began on Monday with Bitcoin climbing to $3478, up from $3200 at the start of trading.
Ripple, Ethereum and other coins dragged higher
Bitcoin’s gains have helped propel the entire crypto market with other major altcoins like Ripple and Ethereum up by more than 10% and 9% respectively on Wednesday.
In fact, the crypto rebound has been felt across the entire market with almost all the top 20 coins up in terms of market cap.
The only cryptocurrency to log losses on Wednesday was EOS, which is down a little over 1% to $2.55 as of 4:23pm GMT.
Has Bitcoin found its bottom?
Bitcoin witnessed yet another major sell-off on 7 December, with it losing more than 10% of its value hitting a low of $3332 – its lowest level since September 2017.
Its decline, just like its recent rise, had a major impact on alternative coins in the market, with Ethereum tumbling more than 14% that day.
Similar losses were see by rival cryptocurrencies, with Litecoin and Ripple (XRP) falling by more than 10%.
It is unclear what sparked Bitcoin’s resurgence over the last few days, with equity markets being hit hard by major sell-offs ahead of the Christmas holidays.
But crypto investors will be hoping that the recent rise is a sign that Bitcoin has found its bottom and prices will begin to stabilise.
2018: A bad year for Bitcoin
The recent rally comes after a what has been a tough year for cryptocurrencies which has seen more than $700 billion in value wiped away.
Exactly a year ago today marks the anniversary of Bitcoin hitting its peak, with the world’s largest cryptocurrency breaking through $19,000 levels.
The prospect of increased regulation combined with a lack of institutional investment in the cryptocurrency market has sent prices tumbling throughout 2018, with investors taking the recent rally as an early Christmas present.
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