- The cryptocurrency market rebounded in evening trading on Wednesday.
- A massive crash sliced market capitalisation in half from its all time high.
- At the time of writing, the market had picked up over $US100 billion in value from the day’s lows.
The cryptocurrency market rebounded Wednesday night after a massive sell-off over the previous two days.
The market for digital coins picked up around $US100 billion in value after bottoming out at $US412 billion. At the time of writing, total cryptocurrency market capitalisation was close to $US520 billion.
Just ten days ago, the cryptocurrency market reached an all-time high above $US830 billion. Fears of a crackdown on trading in South Korea, however, brought the crypto world to its knees. Across the board, digital currencies were down for much of Wednesday, with bitcoin hitting a low below $US9,500, according to Markets Insider data.
The coin, which hit close to $US20,000 in December, was trading at $US11,080 a coin at 6:26 p.m. ET.
Market watchers view the downturn as natural. David Sonstebe, the founder of digital currency IOTA, told Business Insider the correction was not that big when viewed in context.
“At peak, over 40 individual tokens were valued north of $US1 billion, most of which neither have a working product or even team,” he said. “Today’s correction might seem cataclysmic to those that are new to the scene, but crypto has been through this roller coaster numerous times before. The current market cap today is what crypto was at just one month ago.”
As for the future of the market, Brad Zastrow, the core director of global business at Dash, another cryptocurrency, told Business Insider that in the near term, similar situations could occur, but strong projects will survive in the long run.
“I don’t see this impacting strong projects,” he said. “Which have a differentiated value proposition coupled with a robust governance system.”