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After a brutal sell-off, the cryptocurrency market showed signs of recovery on Thursday, and Bitcoin and Ether made up for some losses.
After the sharp sell-off on Wednesday, the cryptocurrency market is showing signs of recovery.
Bitcoin hovered near the $42,000 mark, and Ether rebounded as investors tried to figure out the fact of the collapse, which evaporated billions of dollars and broke the concept of cryptocurrency as a mature asset class.
Jeffrey Halley, senior market analyst at Oanda, said: “Nowadays, in the financial market, you can’t keep good buyers in the market for a long time, and cryptocurrencies are no different.” The scale of liquidation will reduce the ranks of believers.”
Volatility dominated the crypto market, and within a few hours on Wednesday, Bitcoin plummeted and soared by more than 30%. Tesla billionaire Elon Musk criticized Bitcoin for wasting energy, and the carnage began last week when the decision to allow crypto transactions went back. After China warned that digital tokens could not be used for payment, losses accelerated.
Skybridge Capital co-chief investment officer Troy Gayeski (Troy Gayeski) said on Bloomberg TV: “Even after a 30% to 40% misalignment, this is still our best-performing distribution so far this year.” “Key It lies in the cost you are willing to accept, let the bull market participate, tolerate volatility, and be confident that it will finally be sold at a reasonably high price before the end of this year.”
Although all the reasons were the direct cause of the rout, the liquidation frenzy on Wednesday morning was driven by emotion and was disorderly. The coin fell thousands of dollars in a matter of minutes. As investors attract cryptocurrencies in search of a quick recourse to exit, the selling gives way to more selling. When Bitcoin fell below its average price in the past 200 days, everything accelerated.
On Thursday, the market was calm, and traders looked for the next level of technology and guessed whether the price has been oversold. As of 9:54 am New York time, Bitcoin is up 11% to $42,013. Ether rose 15% to $2,919.
Oanda’s Halley said that Bitcoin’s whole number is important. He said: “US$30,000.00 is the current bottom line. If it falls below, it will trigger another wave of surrender.” He added that if the price can stay above US$40,000, it will attract investors to seek renewed action.
Todd Morakis, co-founder of JST Capital, a digital financial product and service provider, said: “This market now offers opportunities for people, but I think you will see people wait and let it settle down. .”
-With the assistance of Lu Wang.
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