Well, somebody bought the dip. Just as critics were rushing to proclaim that the bitcoin bubble had burst, the markets staged a $159 billion recovery. The rally was headlined by the bitcoin price, which rebounded from its sub-$10,000 fling and is currently flirting with $12,000. Several other top-tier coins, meanwhile, returned single day increases in excess of 40 percent.
Altogether, the cryptocurrency market cap clawed its way back to $574 billion, representing a 38 percent recovery from Wednesday’s intraday low of $415 billion.
Wednesday served as a trial-by-fire for recent bitcoin investors, some of whom had purchased the flagship cryptocurrency for $19,000 at the height of the rally in mid-December.
The correction forced the bitcoin price below $10,000 for the first time since early December, but Thursday’s rally enabled bitcoin to regain a bit of the ground it had lost during the downturn. The bitcoin price rose 14 percent for the day, rising as high as $11,901 on Bitfinex before ebbing back to a present value of $11,451. Bitcoin now has a market cap of $193.9 billion.
The Ethereum price made a similar recovery, climbing 19 percent to $1,037 after dipping as low as $781 on Wednesday afternoon. Ethereum now has a $101.1 billion market cap.
Thursday’s recovery lifted virtually all cryptocurrencies against the US dollar, but no top-tier coin returned a better performance than Ripple. The ripple price surged by 57 percent to $1.61, restoring its market cap to $61.6 billion.
Several factors contributed to Ripple’s outsized performance, including reduced fears that South Korea — by far XRP’s largest market — will attempt to implement a blanket ban on cryptocurrency trading.
Additionally, a major South Korean bank announced that it will conduct a second blockchain trial using Ripple’s enterprise blockchain. This trial will not feature XRP integration, but these types of announcements still tend to provide ripple with a price bump.
Altcoin prices rose across the board on Thursday, and the recovery lifted the total altcoin market cap to $386 billion.
The bitcoin cash price posted a strong 24 percent gain, while Cardano’s 14 percent increase lagged the returns of other top 10-cryptocurrencies.
Litecoin and EOS each achieved 27 percent recoveries, while NEO’s 34 percent increase brought its market cap within $350 million of the $10 billion checkpoint.
Next to Ripple, the two strongest performances came from NEM and stellar, which rose 47 percent and 57 percent respectively to round out the top 10.
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Last modified: March 4, 2021 5:03 PM