Bitcoin, the flagship cryptocurrency, has recently surged past the $6,500 mark after seeing its price lose over $1,000 in a day and tumbling earlier this month, which helped the market add $4 billion in a day. The slump was seemingly caused by a mysterious whale, who moved over $100 million worth of BTC to exchanges at the time.
According to CryptoCompare data, bitcoin is now trading at $6,530 after rising 1.7% in the last 24-hour period. It managed to hold its key support at $6,000 during the altcoin slump, that saw its market cap decline 85% since its previous peak, per the MVIS CryptoCompare Digital Assets 100 Index.
Despite the market’s sudden turn, cryptocurrency owners shouldn’t yet celebrate as, according to Jani Ziedins, a market analyst from CrackMarkets, the “worst is still ahead of us.” Ziedins wrote:
Bitcoin keeps slipping and is barely holding $6k support. Last week’s rebound to $7.4k is dead and gave us another lower-high since we failed to match the previous $8.4k bounce. Lower-highs tells us the next lower-low is just around the corner.
The analyst added, according to MarketWatch, that a breach of the critical $6,000 support zone could be imminent, although “each bounce is still a selling opportunity.” As CryptoGlobe covered billionaire investor Mike Novogratz doesn’t share the analysts’ opinion.
On social media, the founder of crypto-focused merchant bank Galaxy Digital called a bottom in the crypto market, while pointing to a chart from the Bloomberg Crypto Index (BGCI), an index launched to “track the performance of the largest, most liquid portion of the cryptocurrency market.”
BitPay’s chief commercial officer, Sonny Singh, has also recently revealed in an interview on Bloomberg TV that he’s “very bullish” on bitcoin, and not too sure about the future of altcoins.
Behind the cryptocurrency’s rally could be reports of Morgan Stanley being set to offer bitcoin swap trading amid growing institutional investor interest. The New York City-based banking giant is reportedly going to offer investors the opportunity to bet on bitcoin-related derivatives using its “price return swaps.”
Ethereum’s ether, the second-largest cryptocurrency by market cap, has seen its price grow 8% in the last 24-hour period, as it’s currently trading at $206.6. As covered, the cryptocurrency managed to start recovering after falling for eight sessions in the previous 10. It has since then been holding above $200.
ETH saw its price surge for a number of reasons, including the launch of two dollar-backed stablecoins on its platform and comments from Morgan Creek’s CEO Mark W. Yusko, who claimed he’s bullish on its future as it may act as the “World Wide Web of the TrustNet.”
Citigroup has also come up with a new mechanism called “Digital Asset Receipt” (DAR), which is set to help investors get in on the cryptocurrency market. The bank is reportedly planning to “act as an agent issuing so-called digital asset receipts, or DARs, to enable trading by proxy without direct ownership of the underlying coins.”
Most other top altcoins are currently in the green. In the last 24 hours Litecoin went up by 0.5% and Bitcoin Cash by 2.32%. EOS, which recently became a quote currency in HitBTC, gained 3.7%.