After Bitcoin rallied to $42,000, the cryptocurrency carnage was reduced | Business Wire Business & Economic News
After a brutal sell-off, the cryptocurrency market showed signs of recovery on Thursday, and Bitcoin and Ether recovered some of their losses.
After the sharp sell-off on Wednesday, the cryptocurrency market is showing signs of recovery.
Bitcoin hovered around $42,000, and ether rebounded as investors tried to figure out the multi-billion dollar collapse and broke the concept of cryptocurrency as a mature asset class.
Jeffrey Halley, senior market analyst at Oanda, said: “Nowadays, you can’t attract good buyers in the financial market for a long time, and the same is true for cryptocurrencies.” “Yesterday’s large-scale liquidation will shrink the ranks of believers. “
Volatility dominated the cryptocurrency market, and within a few hours on Wednesday, Bitcoin plummeted and soared by more than 30%. Tesla billionaire Elon Musk criticized Bitcoin for wasting energy and went back to last week when the decision to allow crypto transactions began. After China warned that digital tokens could not be used for payment, losses accelerated.
Skybridge Capital Co-Chief Investment Officer Troy Gayeski (Troy Gayeski) said on Bloomberg TV: “Even after 30% to 40% displacement, this is still our best performing distribution so far this year.” “Key It lies in the cost you are willing to accept, let the bull market participate, tolerate volatility, and be confident that you will eventually sell the product at a reasonably high price before the end of this year.”
Although all the reasons were the direct cause of the rout, the liquidation frenzy on Wednesday morning was driven by emotions and was disorderly, with coins falling thousands of dollars within a few minutes. As investors attract cryptocurrencies to seek quick recourse to exit, the selling gives way to more selling. When Bitcoin fell below its average price in the past 200 days, everything accelerated.
On Thursday, the market was calm, and traders looked for the next level of technology and guessed whether the price has been oversold. As of 9:54 am New York time, Bitcoin is up 11% to $42,013. Ether rose 15% to $2,919.
Oanda’s Halley said that Bitcoin’s whole number is important. He said: “US$30,000.00 is the current bottom line. If it falls below, it will trigger another wave of surrender.” He added that if the price can stay above US$40,000, it will attract investors to seek renewed action.
Todd Morakis, co-founder of JST Capital, a digital financial product and service provider, said: “This market now offers opportunities for people, but I think you will see people wait and let it settle down. .”
-With the assistance of Lu Wang.