Bargain hunting. The crypto market is going through a welcome little relief rally following the drubbing last week that saw pretty much all coins facing extreme downwards pressure.
Bitcoin, the number one cryptocurrency by market value, is currently changing hands at around $37,400, which represents a 19% gain on the day. Still some distance left to cover after a devastating 25% decline over the week that ended May 23.
It was the second straight weekly loss for BTC, and the biggest since March 2020.
Similarly, Ether, the second biggest crypto is also well and truly back in the green. It is up a heavy 38% over the past 24 hours, and can now be had for a shy under $2,500. It dropped 41% over the same period, making for its most significant weekly decline on record.
Other prominent coins like the Binance BNB token, Bitcoin Cash, Polkadot, and Internet Computer Protocol registered gains anywhere from 8% to 10%. Coins associated with decentralized finance (DeFi) like LINK and UNI are trading 22% and 13% higher respectively.
This relief to battered cryptocurrencies seems to have come thanks to the demand from wealthy investors that are beginning to buy this dip by staggering limit orders and running longer time weighted average prices.
The dip buying shows that large investors remain confident of the long-term bullish prospects of cryptocurrencies — most notably in the wake of recent environmental and regulatory concerns that are being sounded off in all corners of the crypto space lately.
And while the market mood may have soured after US electric carmaker Tesla suspended vehicle purchases with Bitcoin citing high fossil fuel use by miners, things are slowly getting back up.
China also reiterated its ban on cryptocurrency mining last week, drawing additional selling pressure for these digital coins.
As a result, the market entered a downturn due to weak hands and short-term traders that saw Bitcoin fall to a 3.5-month low of $30,000 last week, marking a 53% drop from the record high of $64,801 that it reached on April 14.
Long way to go yet, to reach that milestone again.
But baby steps, as they say.
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