Bitcoin bulls should be pretty happy on Wednesday morning, as the currency is continuing to climb after a five-day disaster. All digital coins crashed last week on new regulation news from Asia, and they continued to spiral down as some major US and UK financial institution announced that credit cards can’t be used on crypto exchanges any longer.
Bitcoin, the first crypto coin and the most important of the bunch, dropped below $6,000 the other day, for the first time since November. All other currencies took a similar plunge accordingly.
But the coins are back up, seeing impressive gains compared to Tuesday, with Bitcoin already trading at well over $8,000.
Data from CoinMarketCap shows that all coins have been making up for lost ground for the past 24 hours. Bitcoin is up 25%, Ethereum jumped to over $820 for a 31% increase, while Ripple is approaching the $0.80 level, which marks a 21% improvements. Some coins are seeing even bigger gains, like Neo (54%) and Nem (45%).
Goldman Sachs is worried about the correlation between the prices of different cryptos, Business Insider explains, whether we’re looking at uptrends or downtrends.
“The high correlation between the different cryptocurrencies worries me,” Steve Strongin said in a note to investors. “Contrary to what one would expect in a rational market, new currencies don’t seem to reduce the value of old currencies; they all seem to move as a single asset class.”
The market capitalization of all coins is closing in on $390 billion, after dropping to around $325 billion in previous days. Crypto coins may have had a rough start of 2018, but that market cap is still astronomical compared to early 2017 when the total market cap for digital currency stood at $18 billion.
That said, there’s no telling when the next crash might occur, so act responsibly with your investments. But it sure looks like not all investors were spooked by the numerous announcements related to stricter Bitcoin regulation means, and plenty of people have been buying the dip in the past few hours. South Korea, India, and China all delivered some pretty bad news in the past weeks, but only China doubled down on actually banning crypto trading.