Cryptocurrency markets bounce back with 24 hour gains up to 40%+
Cryptocurrency markets have bounced back after a multi-week bloodbath, with some especially quick gainers.
After a downhill ride that's lasted about two weeks, the cryptocurrency markets may have hit the bottom and bounced back up, according to CoinMarketCap prices at the time of writing.
On 6 February the bloodbath had some coins shedding over 30% of their value per 24 hours, but a day later some of them are showing gains of 40% or more.
Some of the quickest gainers of the last 24 hours, and their approximate gains, include:
- ICON (IXC)* +40%. Korea's all in one "hyperconnect" coin saw rapid gains after sharp falls previously.
- NEO/GAS (NEO/GAS) + 30%. The "Ethereum of China", and its counterpart dividend and transaction fee coin.
- Request Network (REQ) +30%. A cryptocurrency designed to serve as a kind of automated accountant on top of other currencies.
- FunFair (FUN) + 28%. A cryptocurrency that's deliberately, rather than just incidentally, tied to gambling.
- Walton Chain (WTC) +27%. A joint venture China/Korea internet of things (IoT) coin.
- Enigma (ENG)* +27%. A cryptocurrency that enables confidential data analysis, with a specific focus on machine learning of cryptocurrency price movements.
- SALT (SALT) +23%. A cryptocurrency that allows for compliant industry-standard fiat currency financing with blockchain assets (crypto) as collateral.
- Binance Coin (BNB), Dragonchain (DRGN) and Factom (FCT) +21%. The native Binance exchange coin, a turnkey blockchain business solution coin originally conceived by Disney, and an automated paper trail coin respectively.
- NEM (XEM) +20%. A broadly applicable blockchain coin based in Japan, offering blockchain smart contracts, transactions and messaging functions.
* These coins dropped about 30% or more the previous day. Their relatively large apparent gains today might be because they previously fell further.
Top market cap coin performance
The gains extended across the top 20 coins by market cap (excluding USDT Tether), with all of them showing 10% to 20% price increases except those above which increased by more, and bitcoin and Bitcoin Cash which were lagging slightly at 9% and 5% respectively.
All coins are showing in the green over the last 24 hours at the time of writing.
While this might be good news for speculators, the rise also drives home a recent warning issued by a Goldman Sachs analyst, and the potential red flags that might be raised by these kinds of synchronised market movements.
It's not clear whether or not this just a temporary bounceback or the start of another bullrun, or what exactly is causing it. But factors to consider might include:
- Glowing testimony on the potential of cryptocurrencies, publicly delivered to the US Senate Banking Committee by the CFTF chair. This might have reassured some speculators that cryptocurrencies are built on a technically solid foundation with real world applications.
- Yesterday's historic stock market crash. The Dow Jones saw the largest one-day drop in its history, closing 1,175 points lower. In combination with the CFTC testimony, crypto might have suddenly started looking like a more tempting place to put money.
- It was time. There were no sellers left, and those who were going to do it already did.
- Ethereum price breaks all time high of US$1,448
- Ethereum price: Massive slide as market faces bearish pressure
- Ethereum 2.0: Roadmap, timeline and implications
- Bitcoin falls to US$34,000 as confidence in money markets improves with the Biden inauguration
- Bitcoin price lags while regulators raise fears and banks grapple
Disclosure: At the time of writing the author holds ETH, IOTA, ICX, VEN, XLM