The crypto market has continued its recovery over the past 24 hours, as both major cryptocurrencies and tokens continued to surge in value.
While Bitcoin remained relatively stable with a 1 percent gain, Ethereum, Ripple, Bitcoin Cash, and EOS recorded 4 percent, 9 percent, 8 percent, and 11 percent gains respectively, pushing the valuation of the crypto market to $220 billion.
Join CCN for $9.99 per month and get an ad-free version of CCN including discounts for future events and services. Support our journalists today. Click here to sign up.
As was the case on August 17, the best performers in the global cryptocurrency market today have been tokens. Ta Ta Tu, Nebulas, Aion, EOS, and Ontology increased by 11 to 63 percent against the USD, recording large gains against Ethereum and Bitcoin as well.
What is Pushing the Market Upwards?
The volume of major cryptocurrencies including Bitcoin, Ethereum, Ripple, and Bitcoin Cash have not increased by a large margin in the past week. In fact, the volume of Bitcoin and Ethereum, at $4.3 billion and $1.9 billion, are lower than the volume they recorded last week when Bitcoin dipped below $6,000 and Ethereum dropped to $250.
One of the few contributing factors to the recent rally of the crypto market is the initiation of a corrective rally, which Bitcoin has historically done throughout the past nine years. Each time its price would fall 70 to 90 percent, it would surge back up, beyond its previous all-time high, in a mid-term rally.
The momentum of the crypto market is stronger than previous corrective rallies, mostly due to the strong performance of tokens and small market cap cryptocurrencies.
Usually, investors do not purchase tokens and cryptocurrencies with small valuation because of two major reasons; first, the lack of fiat trading pairs for tokens and second, high level of risk involved in trading tokens.
As such, a rapid increase in the value of tokens in a short period of time often leads to a strong mid-term rally, and some analysts have predicted the price of Bitcoin to recover to the $9,000 resistance level in the near future due to the newly found momentum.
In an interview with Bitcoin.com, Japanese cryptocurrency analyst and Fiscalo Digital Asset Group director Masayuki Tashiro said that tightening of regulations in Japan and positive developments in major markets like South Korea pertaining to regulation could lead the market to rebound relatively quickly.
“Personally, I am bullish, and by the time the outline of the regulations will come together in October, those investors who will feel safer will come back. I hope things won’t get as overheated as last year, but I believe BTC can win back the value of 1 million yen (9,020$) in range,” Tashiro said.
Bitcoin at $9,000
If Bitcoin moves in a similar trend as movement recorded in February, April, and June, it is likely that the Bitcoin price tests the higher region of $9,000 once again, possibly reaching $10,000 in the mid-term.
But, in order for the market to find stability and momentum, it is important for Bitcoin to increase gradually, to ensure that the market is not left vulnerable to another massive correction in the upcoming months.
Featured image from Shutterstock. Charts from TradingView.