After a 48-hour corrective stint of Bitcoin BTC and other altcoins, the cryptocurrency market is witnessing a recovery. Cryptocurrency and equity market investors were very worried about the possibility of the bankruptcy of China’s Evergrande real estate firm.
Many feared that a possible default of Evergrande would start a contagion decline in the global financial market, which would have been similar to that of 2008’s Lehman Brothers moment. However, Evergrande, the 2nd largest property developer in China in terms of sales, has agreed with bondholders to avoid a default on its obligations technically. This news sparked a recovery in the crypto market as a whole. The price of Bitcoin (BTC) has reached a 24-high at US$43,978.62 and at press time BTC/USD pair is trading at US$43,857.43.
In the evening of September 21, 2021, the price of BTC reached a low of US$39,787.61. Since then it has rebounded by over 10.5% to an intraday high at US$43,857.43.
The spike in the price of BTC/USD pair during midday came after the comments made by the United States Federal Reserve Chairman Jerome Powell. He had said that the central bank will continue purchasing the current level of the monthly bonds in the foreseeable future. He also signaled that an interest rate rise could take place as soon as 2022.
Gary Gensler, the Chairman of the SEC (US Securities and Exchange Commission), recently commented that they are reemphasizing plans of cracking down on the market of crypto and stablecoins. Despite these comments, the market recovered well, thanks to the dual news of Evergrande’s deal and the FED chairman’s comments.
Besides BTC, Ethereum (ETH) also witnessed a robust recovery. It recovered from a 7d low at US$2,676.41 and reached yesterday’s high at US$3,089.08. At press time, ETH/USD pair is trading at US$3,115.90, which is a 16.4% rebound from its 7-day low price.
The Crypto Fear & Greed index shows that the crypto traders are suffering from extreme fear currently after remaining neutral a week back. In August 2021, the market suffered from extreme greed. The extreme fear in the wider crypto market is mainly due to the increasing regulatory uncertainties as well as Evergrande’s uncertain future.
Despite all these factors, the cryptocurrency market is witnessing the rise of altcoins. During the rebound, the prices of the top 200 cryptos (in terms of market cap) have increased. A decentralized finance protocol based on Ethereum blockchain named Enzyme (MLN) was the top gained. Its price increased by +32% in the last 24-hours to reach a price of US$160.30. Another altcoin that made a decent recovery is COTI. Its price jumped by 21% to US$0.385.
Other altcoins that made significant gains are Arweave (AR) and Perpetual Protocol (PERP). The market cap of the crypto market is hovering around US$1.947 trillion with the dominance rate of BTC hovering around 42.1%.
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