After a major crash yesterday, in which some $21 billion were erased from the cryptocurrency market, a recovery was seen over the past 24 hours, as key currencies climbed back. While it is too soon to call it a trend reversal, it is possible that the crash was caused by a major sell-off that has since subsided.
Ethereum rebounds to $300 before correcting again
The recovery seen in the cryptocurrency market did not skip Ethereum, as it nearly reached the $300 mark yesterday, before correcting back to around $270. After three consecutive losing days, the world’s second largest cryptocurrency finished yesterday up by around $20. In addition, Ethereum traders continue to be very active, keeping trading volumes above $2 billion yesterday.
Bitcoin flirts with $2,500
After adding more than $100 to its value yesterday, Bitcoin continued its positive trend this morning, reaching the psychologically important $2,500 milestone, then correcting slightly. Bitcoin’s market cap briefly fell below the $40 billion mark yesterday, but managed to climb back.
China wants to push blockchain technology
The People’s Bank of China has announced a five-year plan to promote the integration of blockchain technology, which serves as the underlying infrastructure for most major cryptocurrencies. The bank has also looked into using a cryptocurrency of its own, which could mean that China might be the first government in the world to fully embrace cryptocurrency technology. It is unknown if the bank intends to develop a new currency, or convert the Yuan to blockchain technology, however, it is still a major seal of approval for the cryptocurrency market from the world’s second-largest economy.
This article was first posted on Etoro.com/blog, a Premium Trading Partner.