Coins See Green: Cryptocurrency Market Cap Recovers $15 Billion as Bitcoin Cash, XRP Lead
The cryptocurrency market’s long road to recovery took a positive step forward on Monday, as coin values rebounded sharply from weekend lows with bitcoin cash, XRP and Litecoin leading the way higher.
The combined value of all coins in circulation reached a high of $132 billion on Monday, according to CoinMarketCap. The total market cap plummeted to $115 billion on Sunday, the lowest since September 2017. Amid the rout, bitcoin’s price briefly traded below $3,500 for the first time in 14 months.
On Monday, bitcoin bounced back to trade as high $4,207 on Bitfinex. Aggregate pricing data courtesy of CoinMakretCap showed an intraday peak of $4,107.
Altcoins were the biggest movers on Monday, with bitcoin cash rebounding as much as 28% over a 24-hour stretch. BCH is currently valued at $208, up 23% on the day. As Hacked reported last week, bitcoin cash ABC has seemingly prevailed in the hash war, with most major exchanges assigning it the BCH symbol. Calvin Ayre, one of the primary backers of the competing bitcoin cash SV chain, announced via blog post that he no longer wants the bitcoin cash name.
XRP rose 6.6% to $0.3734, where it was approaching an intraday resistance near $0.3800. Prices formed a double-top just north of that level earlier in the day.
Litecoin was also among the top-performers, rising 7.6% to $31.20. Ethereum climbed 3.4% to $114 while Stellar XLM added 6.4% to $0.1544.
Monster Short Squeeze
Price action over the past two weeks has made it virtually impossible to determine whether Sunday’s low represents a true bottom for a market that has seemingly capitulated in the wake of the bitcoin cash hard fork. However, as cryptocurrency analyst Alex Kruger recently explained, market participants should be looking for a 15-30% correction off the recent lows to determine the sustainability of the recovery.
In a Sunday Twitter rant, Kruger described the recent collapse as a “monster short squeeze.” In terms of the bottoming out process, he said:
“Think that was it. Impossible to know if a bottom is a short or long term bottom. Possible to sense once a major bottom may be in by looking at high frequency price bars and volume i.e. when the elastic is ready to snap back. If it swings 15-30% off the lows, that’s a major bottom in % terms.”
With the worst of the BCH hash war behind us, market participants have some reason for optimism. The war not only created a permanent division in the fourth-largest blockchain, but diverted hash power away from mining bitcoin. It also demonstrated once again how technical disputes can disrupt the entire network. This had a clearly adverse affect on investor sentiment.
Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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