Photo: PEXELS
Bitcoin trading peaked at $4,341.44. It was a sudden turnaround from the week of Thanksgiving, especially when considering that at one point is dropped 80% from its highest peak.
The recovery was a welcome relief to investors who have seen it drop by as much as 30% over the last 7 days. The increase further fueled other cryptocurrencies by double digits and that saw trading exceed $20 billion a day, based on reports by CoinMarketCap.com.
The market increase also saw substantial gains for XRP, which jumped 12% and Ethereum rose by 14%. However, the increase hardly makes up for the losses of investors who suffered losses this year, and is especially painful for when considering this time last year it was valued at over $16,000.
That translates to more than a 77% decline from Bitcoins highest value and for pundits that use cryptocurrencies with various merchants, such as those marketed by Betenemy, the increase is good news.
Andy Bromberg, the president and co-founder of CoinList, a digital tokens platform, commented that the increase may have resulted in investors digging in their heels after a crazy week. Bromberg added:
“Today’s rise is mostly a reaction to the precipitous drops last week and people thinking that may have been an overreaction.”
Bromberg further lamented that due to crypto markets being small in comparison, a single buyer making a large purchase can often begin an avalanche. Adding to this, the CEO of BKCM, Brian Kelly said that the rise might have received a boost as a result of harsh wars relating to the end of Bitcoin Cash.
After Bitcoin divided into two competing versions, the saga of those that funding Bitcoin Cash with the sale of Bitcoins is coming full circle and now those buyers are no longer in the market.
While today’s positive news did not see double-digit spikes, it was a positive step forward for the crypto markets as it shows buyers that trading in this market is a legitimate asset class.
Earlier in the week, Bitcoin got a further boost in recognition after the chairman of the New York Stock Exchange, Jeff Sprecher stated on Tuesday during the Consensus Invest conference that there have been headlines about cryptocurrencies flopping, there is a future for digital assets regulated markets.
Sprecher is backing up that through Intercontinental Exchange via Bakkt, a new startup slated to be live this January. Adding to this, both VanEck and Nasdaq are intending to begin to offer cryptocurrency products, including Bitcoin futures, during the first quarter of 2019.
However, while that is positive news for investors, and affords a higher degree of legitimacy, Jay Clayton, the SEC Chairman stated that before he could be comfortable giving this the green light, he first would need to see certain market problems solved.
What the exact issues are was not mentioned but the good news in that is Clayton did not close the door in giving the green light ones those issues are resolved.
