Recovery for cryptocurrencies
The cryptocurrency market has had a rebound. As of February 7, 2018, in the early morning hours, all digital currencies had rebounded from their previous day’s close. Bitcoin rose 22.8% during the past 24 hours and was trading at $7,854 as of 4:00 AM EST on February 7. Its RSI (relative strength index) level also rebounded to 34.6. An RSI below 30 indicates a possible reversion in price. The market cap of bitcoin rebounded to $135 billion.
The rebound also spread to other altcoins. Ethereum rose 30% to close at $794.70. Ripple increased 21.3% and was trading at $0.77. Bitcoin Cash, Litecoin, and Cardano surged 18.2%, 30%, and 29.6%. NEO was the top performer among the top ten cryptocurrencies according to market cap (capitalization). It increased 54.9% over the past day.
The overall top performers for the day were FunFair, Quantstamp, Request Network, and ICON, rising 85.9%, 76.7%, 71%, and 69.5%, respectively.
Regularizing the market
Attempts to regularize the cryptocurrency markets (ARKW) (ARKK) could have caused some of the rout in the market, but there were probably multiple causes. A clampdown on trading in Asian countries, including India (INDL), South Korea (EWY), and China (FXI), may have added fuel to fire. The ban of bitcoin purchases with credit cards could have added further impetus to the downturn.
After attempts to regularize the cryptocurrency market in the longer term, cryptocurrencies could possibly regain their lost steam and rally, although their extreme volatility could keep investors cautious.