Crypto Markets Have Recovered $26 Billion Since Saturday
Have the crypto markets finally bottomed? Price behavior over the past two days seems to show a major shift in momentum among the majors, catalyzed by double-digit gains in bitcoin and major technical breakouts for the likes of XRP, Ethereum and bitcoin cash.
Markets Eye Recovery
After barely defending the $100 billion plateau on Saturday, the cryptocurrency market capitalization has gained a swift $26 billion, with the bulk of the rally occurring in the last two days. The uptrend was kick started by bitcoin’s double-digit rally on the anniversary of its $20,000 bull run.
At the time of writing, every coin in the top-20 had reported gains compared with Tuesday. Bitcoin cash was by far the best performer, adding a swift 33% to reach $121.03. BCH had experienced a brutal selloff in the wake of the Nov. 15 hard fork, dragging prices to depths never before seen in the currency’s history. (For the backstory, read: Crypto Selloff Deepens as Bitcoin Cash Hard Fork Proves More Costly Than Ever Predicted.)
Bitcoin SV, which emerged from the hard fork as a major player in the cryptocurrency market, also traded in a positive direction on Wednesday. BSV shot up 16.1% to $91.50.
XRP rose 14% to $0.3823, where it overcame a vital resistance, setting the stage for an even bigger short-term rally. The same could be said about Tron, which gained 15.4% to $0.0166. TRX has gained some 30% over the past five sessions and is currently eyeing resistance at a recent double-top formation.
Ethereum was back above $100 on Wednesday; price climbed 10.4% to $105.51. Stellar XLM rose 10.6% to $0.1215.
The rally was accompanied by a large upswing in daily trading volumes. Turnover on digital currency exchanges topped $21 billion, a virtual doubling of weekend trading levels.
VanEck Exec Outraged Over Lack of Bitcoin ETF
One of the biggest debates in the crypto community returned to the spotlight recently after a VanEck executive described his outrage over the lack of bitcoin trading options. Gabor Gurbacs, the outspoken director of digital assets at VanEck, is dismayed at the double standards applied by the U.S. Securities and Exchange Commission (SEC) with respect to bitcoin ETFs.
CCN recently uncovered this gem of a tweet from Gurbacs dating back to Dec. 7: “Coinbase shitcoins OK for millions of retail investors. Bitcoin ETF for institutional investors too crazy. What f*ing parallel universe is this?”
Of course, Gurbacs is referring to the proliferation of altcoin and token trading on Coinbase, America’s premier digital currency venue. Coinbase has been cleared to list several ERC-20 tokens at a time when the SEC was still giving the cold shoulder to fund managers trying to securitize bitcoin. The regulator recently delayed its ruling on the VanEck SolidX Bitcoin Fund until late February. It has already struck down dozens of other ETF applications.
The ETF debate will heat up next year as markets await the SEC’s decision. Another ruling against VanEck and its partners may further deflate investor sentiment at a time when markets are looking for greater regulatory certainty around crypto investments.
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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