Daily Times

The prices of major cryptocurrencies bounced back on Wednesday after plunging for days and touching the lowest level of the current year.

The market capitalisation of the crypto market increased by 8.7 percent to reach $1.41 trillion as of 11:15am GMT. Earlier in the preceding three days, the crypto market plunged by over 18.7 percent.

The price of bitcoin (BTC), the largest cryptocurrency, which dipped to $28,993 in early trading, bounced back and gained 8.65 percent to reach $34,492. With this increase in price, the market capitalisation of the BTC has reached $646 billion.

Likewise, ethereum (ETH) price increased by 6.63 percent to reach $2,021. With this increase in price, the market capitalisation of ETH has reached $235 billion.

Similarly, XRP gained 10.11 percent to reach $0.647. The market capitalisation of XRP stands at $64.7 billion after this increase.

On the other hand, Cardano (ADA) price reached $1.28 with a 13.71 percent gain in its price. Its market capitalisation has reached $41.1 billion with this increase.

Similarly, dogecoin (Doge) gained 17.57 percent to reach $0.224. With this increase in price, the market capitalisation of Doge reached $29 billion.

According to analysts, while bitcoin seems to have found a bottom, a quick rally to record highs looks unlikely, saying the cryptocurrency now faces price consolidation. “Bitcoin looks to have bottomed out, having digested most negative news during the recent sell-off from $41,000 to $29,000,” they said.

Prices topped $41,000 early last week before turning south in the latter half after the Federal Reserves’ unexpected hawkish tilt on interest rates.

With the quick recovery, bitcoin has re-entered the broad range of $30,000 to $40,000 established in the aftermath of the mid-May sell-off. They expected consolidation to continue for some time unless “there is another major bearish China headline.”

They said that big investors are re-entering the market as risk appetite returns, adding short-squeeze hunters are exiting the market. “We believe bitcoin is very close to the bottom, at least in this current wave,” analysts noted.

Bitcoin options worth more than $2 billion are set to expire Friday. The monthly expiries have gained prominence this year as volatility-inducing events.