Cryptos Gear Up to Kickstart the Week and Erase Some Losses

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Created by TradeOr

3rd Party Analysis 24 May 2021

Key Takeaways

  • Digital assets attempt to take off from the weekend lows
  • Bitcoin, ether, higher by 8% a piece on Monday

Cryptos Gear Up to Kickstart the Week

Bitcoin, Ether and alternative coins are up since the early trading hours on Monday. The market is now looking to start the week in positive territory after last week brought increased fear, uncertainty and doubt to the crypto space.

Today, bitcoin is trading in the green, higher by 8% as bitcoin’s price is gyrating above the $36,000 threshold. At current market price, bitcoin is lower by 43% from its peak. Still, from the bottom reached over the weekend, bitcoin is trading to the upside by 17%. On Sunday, the biggest token by market cap dropped to $30,000, a level last seen in late January. Currently, Bitcoin’s market value stands at $690bn, down from $1.2tn in mid-May.

Ether, the second largest digital asset, is also staging a rebound. The Ethereum token is now trading around $2,250, higher by 9% on the day. Yesterday, ether slipped to $1,700, a price unseen since late March. The token depreciated more than 60% to its lowest point. Today, however, ether is higher by 30% from its bottom as market participants are once again painting an optimistic outlook.

Investors Keep an Optimistic Outlook

Last week’s devastating sell-off was one of the worst cryptocurrency meltdowns. In the span of about two weeks, bitcoin’s value and the overall market capitalization nosedived, losing more than 50% as investors retreated from the market due to increased market risks, particularly coming from China.

Chinese regulators issued a statement that all financial institutions are banned from dealing in cryptocurrencies. On Friday, to deliver the final blow, the Chinese government announced it will “crack down on bitcoin mining and trading behavior”. The news prompted a sell-off that extended through the weekend, pushing bitcoin’s price below $30,000.

Cryptocurrency enthusiasts are still optimistic that the outlook remains positive. Citing prior meltdowns that exceeded 50%, crypto supporters say the strong gains in the digital assets come with the inherent volatility that could sometimes be stomach-churning.

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