The Bitcoin and Ripple prices headlined a $45 billion cryptocurrency market rally that appeared to be predicated on optimism that this year’s G20 summit will not produce an international framework on cryptocurrency regulations.
Monday brought a welcome respite for cryptocurrency investors, as the markets demonstrated a buoyancy that has been rare in recent days.
The Bitcoin price soared by 15 percent for the day, reversing a weeklong downtrend that had seen the flagship cryptocurrency decline from $9,500 to $7,400. Bitcoin is now trading at $8,557 on Bitfinex, which translates into a $146.9 billion market cap.
The rally was not isolated to Bitcoin; in fact, BTC’s share of the cryptocurrency market cap declined by about three-quarters-of-one percent for the day to a present value of 44.4 percent.
Altogether, the cryptocurrency market cap swelled by $45 billion, representing an index return of more than 15 percent.
The Ethereum and Ripple prices each slightly outperformed Bitcoin, rising 15.4 percent and 19 percent respectively. Ripple’s single-day performance was best among large cap-cryptocurrencies, and the XRP token is now valued at $0.67.
Bitcoin Cash and Litecoin, meanwhile, each lagged the index despite returning double-digit percentage gains. BCH and LTC are now trading at $977 and $160, respectively.
The next four cryptocurrencies posted monster gains, with each far-outstripping the index performance.
Sixth-ranked EOS soared by nearly 30 percent, raising its price to $5.24, and the Cardano price climbed to $0.17 following its 32 percent surge. NEO’s climb was not quite so precipitous, but its price still climbed by nearly 27 percent to $67.49.
The top 10’s most impressive performance came from ninth-ranked Stellar, whose price exploded by approximately 36 percent to $0.23. Stellar now has a $4.3 billion circulating market cap and sits just $60 million behind NEO for the eighth position in the rankings.
IOTA rounded out the top 10 with an index-beating 16 percent climb to $1.28.
Today’s market rally correlated with optimism that this year’s G20 summit will not produce an international framework for cryptocurrency regulations.
As CCN reported, Mark Carney — chairman of the Financial Stability Board (FSB), an international regulatory body — sent a letter to G20 finance ministers and central bank governors advising them that cryptocurrencies represent a small component of the economy and do not warrant international regulatory action at this time.
The FSB’s recommendation contrasted with statements from a variety of G20 financial regulators calling for the summit to feature discussions on coordinated cryptocurrency regulations.
Though the appetite for these regulations remains strong, the likelihood that the summit will produce them at this year’s meeting now appears slim given the FSB’s present stance.