After an aching bear run, the cryptocurrency markets responded with significant gains on Thursday as investors went bargain hunting.
Bitcoin, the largest cryptocurrency which dropped as low as $30,100 yesterday, traded as high as 15 percent to $42,500 today, almost recovering all of its previous-day losses. Yesterday’s marked its biggest intraday decline since March 2020.
Galaxy Digital CEO Michael Novogratz said in an interview with CNBC on Wednesday that bitcoin’s morning price dip “felt like we had capitulation” (the point in a market downturn when investors give up on recapturing lost gains and sell rather than hold a given asset).
Ether, the second-largest cryptocurrency, was also on the mend Thursday, up 20 percent to about $2,912 at press time. The price tumbled 28 percent over the course of Wednesday, briefly dipping below $2,000.
Binance network’s native coin, BNB, reclaimed its place as number 3 in the markets after it ran up to $381 from yesterday’s dip to $286.
Other cryptocurrencies joined in the rebound. All of the free-floating cryptocurrencies were up over the past 24 hours, with Cardano’s ADA jumping some 69 percent to $1.92. Dogecoin as of report time had gained as much as 72 percent to 42 cents.
Wednesday was a significant day for the crypto markets, as was seen in spot volume records from Coinmarketcap. About $131.1 billion in bitcoin changed hands — nearly $5 billion more than Tuesday’s figure and nearly double the dollar volume of March 12, 2020, the “Black Thursday” of crypto.
It is however worthy of note that as of that time, bitcoin was still one-fifth of its current price. So, when measured on a volume basis, March 2020’s sell-off was much worse.