The cryptocurrency ecosystem has added well over $8 billion this Sunday as most cryptocurrencies have seemingly out of nowhere started surging. At press time most are posting double-digit gains.
Bitcoin, the flagship cryptocurrency, is closing in on the $3,700 mark after rising 8.5% in the last 24 hours. BTC is currently recovering from a low of little under $3,300 hit earlier this week, in what could be seen as the height of the bear market.
It’s currently unclear what’s behind the cryptocurrency’s surge, although various users on Reddit have been pointing out that Square’s Cash App is currently the number one app on the app store.
While the app itself is a way of transferring money from user to user, it allows users to buy and sell bitcoin. As CryptoGlobe covered the firm managed to let users buy and sell bitcoin in all 50 US states back in August, and saw its downloads keep on surging during the flagship cryptocurrency’s price decline.
Square’s bitcoin trading service has earlier this year moved to over-the-counter trading desks, as it reportedly helps the organization become a more sophisticated trading platform while protecting its users.
The cryptocurrency’s surge is also connected to an increase in its second-layer solution’s user base. As covered, the Lightning Network, which allows users to transact off-chain through payment channels, has grown 300% this month. Growing adoption could also be behind the surge, as 1,500 restaurants in Denmark have restarted accepting BTC payments.
Notably, zooming out some may claim this is a dead cat bounce, as the $3,500-$3,000 area is a support zone for BTC. According to eToro senior analyst Mati Greenspan, it’s still possible for BTC to dip below $3,000 before starting to recover.
BTCC CEO Bobby Lee has, on Twitter, claimed that if history repeats itself the bottom of the bear market will be at $2,500.
If history repeats perfectly, then the current bear market for #Bitcoin would bottom out at $2,500 next month, in Jan 2019.— Bobby Lee (@bobbyclee) December 7, 2018
And then the next rally would start in late 2020, peak out in Dec 2021 at $333,000, and then crash back down to $41,000 in Jan 2023.
Something like that?🙂 https://t.co/M8ljIVnt73
Altcoins Post Double-Digit Gains
While altcoins price movements are often closely correlated to those of BTC, most altcoins are currently outperforming BTC in said period. Ethereum’s ether is up by 0.7% as it’s trading at $97.5. XRP, the second-largest crypto by market cap, is up 4.1% to $0.31.
Litecoin, a crypto created as the silver to bitcoin’s gold, is up 9.3% as it’s at $26.6, while Bitcoin cash, created last year as a result of the crypto’s scaling debate, is trading at $110.5, up 10.2%. Privacy-centric cryptocurrencies Zcash and Dash are up 8.2% and 12.25% respectively.
Other top performing altcoins are NEO, which is trading at $6.7 after rising 12%, and EOS, trading at $2.11 after rising nearly 18% in only a day.