Bitcoin and other cryptocurrencies rebounded on Friday as investors bought dips in the hope that the market would bottom out after a cruel week.
Bitcoin, the world’s most popular cryptocurrency, rose 5.8% to $ 30,600 in the last 24 hours, while Ethereum rose 8.0% to $ 2,110 late Friday morning. rice field.
Smaller cryptocurrencies recorded even greater profits. Solana was up 23.3% to $ 55.62 and XRP was up 19.8% to $ 0.45.
“I think most cryptos have gone down in price,” Marcvander Chijs of First Block Capital told The Post.
Despite Friday’s bump, most cryptocurrencies are still trading in just a few of the highest ever. Investor misery about rising interest rates and a potential recession has hit risky assets in recent weeks.
Vander Chijs said: This week’s crash Bitcoin trading was low at $ 25,400 on Thursday due to market turmoil and a complete storm of crypto-specific factors such as the so-called “stablecoin” TerraUSD explosion and a series of margin calls. Cryptographic investors sell their shares in Bitcoin.
Investors and consultants said retailers are now buying smaller cryptocurrencies like Dogecoin. This has increased by 13.3% in the last 24 hours, but large investors are pouring into significantly discounted Bitcoin.
“Looking at Bitcoin, it’s mostly bought by large institutions,” he said.
Even after the surge on Friday morning, Bitcoin has fallen 9.6% in the last five days and has fallen 35.6% so far this year.
David Sacco, a professor of finance at the University of New Haven and a former UBS investment banker, also said Bitcoin is likely to have already bottomed out this week.
“If I had to bet, I would see Bitcoin reach $ 40,000 before it broke $ 20,000,” he said.
Cryptocurrency markets are increasingly tied to technology stocks, Sacco and other analysts say.
Bitcoin is likely to fall below its recent low of $ 25,400 if the technology-intensive Nasdaq Composite (down 25% so far this year) falls another 10%, Sacco predicted. ..
Garrick Hilleman, research chief at Blockchain.com, also told The Post that Friday’s rise in cryptocurrencies is likely to correlate with tech stock rebounds. Big Tech stocks rebounded on Friday, rising 3.5% for Google, 3.4% for Apple and 4.0% for Amazon.
Coinbase, the only major listed cryptocurrency exchange, surged 18.8% to $ 69.64 on Friday morning, but so far this year, stocks are still stunning 72%. It is falling.
“Value investors are beginning to focus on cryptocurrencies, and companies like Coinbase are trading at relatively low price-earnings ratios compared to comparable companies,” said Hilleman.
Blockchain-based NFT collector items have also been hit as cryptocurrencies have become craters in recent months.
The market value of NFTs in the tumultuous bowling ape yacht club series, which has been endorsed by celebrities such as Jimmy Fallon and Future, has plummeted in recent weeks. According to the data Block from crypto news sites.
The boring Ape Yacht Club’s lowest price, a measure of how much the cheapest NFTs in the collection are selling, fell 25% in the week leading up to Thursday, Brock reported.
And overall NFT daily trading volumes have plummeted by more than 90% since their peak in September. Data from the industry tracking site NonFungible show.
Sacco has predicted that some NFTs may retain their value in the long run in a manner similar to art, but investors should be aware of most products.
“The majority of NFTs are worthless,” he said.
Bitcoin, cryptocurrency rebounds after a brutal cryptocurrency crash
Source link Bitcoin, cryptocurrency rebounds after a brutal cryptocurrency crash