The cryptocurrency market finally surpassed $450 billion in valuation after a long week of correction. This happened for the first time since February 4. Though the market has been steadily recovering, there is still much to do before initiating strong rallies.
As the market valuation of all cryptocurrencies in the market got to $45 billion on February 10, the price of bitcoin peaked at $9,074 and that of Ethereum hit $911. The market has struggled to maintain the same standard since then, even as bitcoin fell by more than $500 to $61 and Ethereum fell to $840.
On February 10, the price of Ether which is considered the native cryptocurrency of the Ethereum network, fell to $820, to a two-day low. The price tendency of Ether usually followed that of bitcoin over the past few weeks. As the bitcoin exceeded $9000, Ether achieved $900 and as the price of bitcoin fell to $500, Ether also fell to $850.
The general market has been following the tendency of major cryptocurrencies including bitcoin and Ethereum. The reason being that in periods of extreme volatility, cryptocurrencies with large market caps tend to operate as reserve currencies of the market.
The cryptocurrency market had recovered faster in previous corrections because there was still hope among newcomers and casual investors that the market will bounce back in short terms. The particularity of this correction as reported by the media is that investors were said to have lost money than optimistic developments within the cryptocurrency sector.
We have the example of South Korea who showed a high level of optimism throughout 2017, but was hit with a bear market in recent weeks due to the negative influence of the press. There are also reports of someone committing suicide last week due to his losses in the cryptocurrency market.
It may require several weeks for the market to rebound despite all the enthusiastic approaches and well-said speeches of different regulating commissions at the senate hearing such as SEC, CFTC, for the market to recover and major cryptocurrencies like bitcoin, Ethereum and Ripple to regain psychological thresholds at $10000, $1000 and $1 respectively.
As the market has been in correction for over 52 days, Pantera Capital CEO, Dan Morehead said that the cryptocurrency market could begin rallying in a few weeks.
Morehead said: “We’re certainly aware it’s a very speculative market. It’s volatile on the upside. It can be volatile on the downside. And we’re 52 days into this. It seems like another couple of weeks and everything will be normal and [bitcoin] can start growing back up again.”