Cryptocurrency Market Rallies to $330 Billion
Bitcoin was apparently going through a particularly bad time after suffering a consecutive six-week low, but from there, the digital currency prices led by bitcoin retraced a whopping $27 billion in lost market cap on Tuesday.
The cryptocurrency market as a collective touched the mark $330 billion on Tuesday, according to CoinMarketCap. Total market values had crashed near $303 billion earlier, which is the lowest since mid-April.
Some lost business was regained by exchanges carried out on Tuesday. as trading volumes jumped to $19 billion from a low near $13 billion earlier in the week.
This reversal came at a time of crisis as bitcoin was approaching a critical support level below $7,000 which if breached, could have triggered a more serious retracement for the currency. Some models had predicted that a drop to $5,000 is possible but despite that bitcoin’s lows have grown increasingly shallower since prices bottomed in early February. It also made it clear that deep pockets were responsible for the bulk of the declines since each selloff was accompanied by lower trading volume.
Bitcoin rose close to $10,000 earlier this month following a four-week upshot in price. On Tuesday, bitcoin advanced more than 4% to $7,500. It retained a total market cap of around $128 billion. Major altcoins including Ethereum, Ripple XRP and Cardano gained between 6% and 16%. The only outlier was EOS, which added a sorry 1.7% amid news of important security flaws ahead of its mainnet launch.
The problems plaguing the market are regulatory confusion, thinner than usual volumes and uncertainty over the pace and timing of institutional adoption which are preventing markets from reaching heights. A failed price rally in the face of the biggest blockchain summit yet – Consensus 2018 – made it clear that the bulls were not returning anytime soon.
The U.S. Securities and Exchange Commission (SEC) is due to conducts a session on digital assets next month which would allow investors to get some clues about the evolution of crypto regulation. The securities regulator will hold an investor conference in Atlanta June 13, and crypto will be on the agenda.