Bitcoin Returns Above $8,000; Other Cryptos Show Recovery As Well
Bitcoin and other cryptocurrencies are starting to show signs of life after the recent market correction.
Bitcoin is showing signs of recovery, trading at $8,137 at 9:00 pm UTC on Wednesday. At the start of Asian market activity, Bitcoin was already on an upward trajectory in the region and climbed to $7,362 in mid-day (5:00 am UTC).
The market correction saw the digital currency rising 26.09%, and it was down only 19.07% in the first seven days of February, shrinking its 35% deficit as of Tuesday, data from CoinMarketCap showed.
All other digital currencies on the top 10 list were also in the black, with Bitcoin Cash (BCH) surging past the $1,000 level. At the time of writing, the coin was trading at $1,004, up 21.63% in the past day.
The rest of the top 10 altcoins (Ethereum, Ripple XRP, Cardano, Litecoin, NEO, Stellar, and EOS) have also rejoined the winning camp.
Concerns about a regulatory shakedown in China and South Korea, hacking incidents, fraud, and reports of market manipulations have all contributed to pressures on the cryptocurrency space over the past few days.
Bitcoin fell to as low as $6,272 yesterday, plummeting 67% after peaking at $20,000 in December. Industry experts have predicted that the drop in Bitcoin’s value below the sentimental $8,000 level would make even hardline cryptocurrency investors re-evaluate their portfolios and sell their virtual currency assets.
However, one industry observer believes that the regulatory crackdown on cryptocurrency will benefit the industry and help it thrive.
MIT Sloan School of Management’s assistant professor Christian Catalini was quoted as saying:
“What’s useful is that as regulation will become more clear that will actually allow the space overall to thrive.”
He suggested that the price correction might have been the result of market manipulation, adding:
“It’s not clear how much of that was enthusiasm, hype, maybe even market manipulation.”
Like many other industry analysts, Catalini shares the view that regulation is good for the crypto space because it would offer protection against unscrupulous individuals bent on scamming unsuspecting investors.
While countries differ in their approach to the rules required, many in the industry hope that any regulations will eventually result in more stable market conditions, and every player will benefit from this new economy.