The price of bitcoin, the most dominant cryptocurrency in the global market, has recovered beyond the $9,000 for the first time since March 14, exactly a week ago.
It is still quite early to determine whether bitcoin and other cryptocurrencies will be able to sustain the current momentum in the upcoming weeks. While bitcoin has rebounded over the past few days, it has only recovered from its price drop that occurred in mid-March. Two weeks ago, the price of bitcoin peaked at $11,600, and the cryptocurrency is still $2,600 away from reaching its monthly high.
Last month, the price of bitcoin dropped to the $5,000 region and after a speedy recovery to $10,000, it dropped to the $7,000 region. This week, bitcoin price recovered to $9,000, and is moving towards entering the $10,000 region once again. While the market has been extremely volatile, bitcoin has gradually recovered from $5,000 to $7,000, to $9,000, even amidst several minor and major corrections.
The strong performance of bitcoin and other major cryptocurrencies like Ethereum and Cardano has led the entire market to regain its losses from earlier this month, as the valuation of the cryptocurrency market increased from $280 billion to $350 billion in merely 48 hours.
Throughout January to March, bitcoin suffered the third worst correction to date, as the price declined 70 percent from $19,000 to the $5,000 region. Yet, unlike its previous two corrections, bitcoin has managed to gradually rebound from major drops.
The large drop in the price of bitcoin was only intensified and exaggerated by negative media coverage, especially from traditional economists and bankers providing baseless price predictions and false information in regards to the regulatory frameworks around the cryptocurrency market.
Almost immediately after the global financial watchdog FSB announced at the G20 summit that major governments are planning to sustain existing regulations and no additional regulations or restrictions will be imposed on the global cryptocurrency market, cryptocurrencies started to recover from their losses.
Alternative Cryptocurrencies Rally
Bitcoin has consistently been the best performing cryptocurrency over the last two weeks. Today, alternative cryptocurrencies rallied, as cryptocurrencies like ICON, better known as South Korea’s Ethereum, increased 60 percent due to various partnerships and airdrops.
ICON (ICX) has been listed by Bithumb, the largest cryptocurrency exchange in South Korea, as its 10th cryptocurrency, causing the cryptocurrency to increase in value and volume.
Ethereum, which has not performed well for over a week, has also demonstrated a 9 percent rise in price, along with Cardano, Litecoin, Zcash, Nano, OmiseGo, and Aion.
The vast majority of casual traders and newcomers are strongly influenced by panic sell-offs and fear of missing out (FOMO). When investors in the public market outside of the cryptocurrency space continue to see the cryptocurrency market and digital currencies within it recover in the range of 5 to 10 percent on a regular basis back to its previous levels, FOMO will drive new investors into the market, allowing short-term rallies to occur.