On December 25, Christmas day, the bitcoin price rebounded to $14,000 after recording a major correction that sent its value plummeting to $11,500.
Overall, the cryptocurrency market recovered from a correction that occured on December 23, in merely 48 hours. Two days ago, every single cryptocurrency in the market ranging from bitcoin to SingularDTV declined by nearly 50 percent, as the cryptocurrency market lost over $100 billion of its valuation.
Today, the cryptocurrency market cap surged from $488 billion to $550 billion, demonstrating signs of recovery for the first time since last week Tuesday.
Bitcoin recorded a price increase of around 6 percent, with over $10 billion daily trading volume spread across USD-to-BTC and KRW-to-BTC trading platforms such as Bitfinex, Bithumb, Binance, and GDAX.
OKEx, the Hong Kong branch of OKCoin, previously the largest cryptocurrency exchange in China before the crackdown on cryptocurrency trading initiated by the Chinese government, processed around 2.4 percent of global bitcoin trades throughout the past three days, solidifying itself as a leading cryptocurrency exchange.
Other leading Chinese exchanges BTCC and Huobi have also started to process large volumes of trades. Given that OKEx, BTCC, and Huobi Pro have migrated their businesses to Hong Kong, in the upcoming months, analysts predict the Hong Kong market to evolve into a major bitcoin and cryptocurrency exchange market.
In South Korea and Japan, bitcoin is still being traded with high premiums. On Bithumb, South Korea’s largest and the global market’s second biggest exchange, the bitcoin price is being traded at nearly $18,000, with a $3,000 premium, while leading markets like the US are processing bitcoin trades at around $14,500.
Ethereum, Bitcoin Cash, Cardano, Monero, and Zcash have also recorded major gains over the past 24 hours, with Ethereum and Zcash rising by 15 percent and 20 percent respectively. Analysts have attributed the recent recovery of the cryptocurrency market to Christmas and the upcoming New Year’s, as the gathering of families, relatives, and friends has historically led to the surge in the price of bitcoin and other cryptocurrencies in the market.
Throughout the holidays, the demand for bitcoin will likely continue to skyrocket as new individual investors become introduced to the new asset class that is bitcoin and cryptocurrencies. Earlier today, Investopedia, an online dictionary platform for finance keywords, stated that bitcoin has been named the term of the year.
“Bitcoin is named ‘Term of the Year’ by Investopedia as measured by search volume and percentage gains over the course of the year. Perhaps unsurprisingly, ‘bitcoin’ cruised to the top spot on the list, beating out terms such as AI, Trumpcare, FAANG and even millennials,” said Blockchain Life.
If new investors flow into the bitcoin market over the next few weeks, more traders would look into cheaper alternatives with lower market caps, as they have the potential to provide higher returns, but with more risks.
“For new investors in crypto, think in market cap. Not price per coin. Market cap gives an estimate of the potential growth. Price per coin doesn’t mean anything as the supply for each altcoin differs. $0.1 per coin doesn’t mean it’s cheap. $100 per coin doesn’t mean it’s expensive,” explained cryptocurrency trader Squeeze.
Featured image from Shutterstock.
Last modified: May 20, 2020 9:15 PM UTC