Everyone will agree yesterday was one of the wildest and most fun days in all of cryptocurrency. It doesn’t happen all that often that the Bitcoin price drops sharply and recovers a lot of the lost value in the same day. Things were looking pretty bleak about 24 hours ago, but right now, the Bitcoin price is back at US$3,750. Whether or not this is a permanent bounce remains to be seen.
Bitcoin Price Crashes and Bounces Back
With the main Chinese cryptocurrency exchanges suspending trading immediately or in the near future, there was a lot of panic in the Bitcoin market. It appeared as if we would see a Bitcoin price of US$2,800 yesterday, but things never dipped that low in the end. Instead, the momentum reversed and over US$700 in losses were recovered in mere hours. It was a very unusual and unexpected turn of events, although the volatility risk is still ever present.
Right now, the Bitcoin price is recording a 23.28% gain over the past 24 hours. This is a more-than-welcome bounce, mind you, as things were looking very bleak yesterday morning. The charts were filling up with one red candle after another, although it quickly became apparent that the market was going through an “oversold” stage. Once things started picking up again, the Bitcoin price rallied in quick succession and recovered nearly US$700 in value. All of this was achieved without much help from China, mind you, as it appeared most people over there have been working hard on liquidating their assets.
With over US$3.5 billion in 24-hour trading volume, it is evident the interest in Bitcoin has not waned one bit. Even though no one was stopping the market crash yesterday, the best course of action was to wait it out and see how things evolved from there on out. As we can see today, things have turned out pretty good, although there is still a lot of uncertainty in the market. Recovering US$700 after such a massive correction raises a lot of questions. Maintaining this momentum will become even more difficult than it was before; that much is evident.
Right now, the top 3 exchanges ranked by trading volume all provide BTC/USD trading pairs. Bitfinex, GDAX, and Bitstamp are leading the pack as we speak. OKCoin is still in the fourth spot, despite Bitcoin trading at a value of US$3,215 over there. Bithumb completes the top five, which is good to see. Huobi is still in the top 10 and it values Bitcoin at US$3,112.48 right now. That’s quite the gap compared to the global market average, although it doesn’t matter all that much moving forward.
With the Chinese exchanges suspending CNY trading at the end of October, it will be interesting to see how the rest of the cryptocurrency holders in that country respond. It is evident a lot of people panic sold and are not too happy about potentially having to buy back in at a higher price. Then again, just because local exchanges can no longer provide BTC/CNY functionality doesn’t mean Bitcoin is banned in China, a fact which people are slowly realizing. Moreover, the suspension of CNY trading appears to be a temporary measure, although there is still a lot of uncertainty in this regard.
In the end, it is good to see the Bitcoin price bouncing back. Even though there may be more hardship on the horizon, things aren’t looking half bad right now. Maintaining the uptrend and keeping things rolling will not be easy. However, now that the market cap is back up at US$62.5 billion, things look far less worrisome than they did a day ago. We can only hope this is the last of these scares for quite some time to come. No form of regulation can affect Bitcoin itself, only the centralized companies dealing with cryptocurrencies.