Bitcoin’s latest deep below the $20,000 level came as a shock to the entire cryptocurrency industry and it drew altcoins down as well. This morning, however, the cryptocurrency surged significantly, reclaiming the support at $20,000. Today, Bitcoin BTC reached $21,254 for the first time in the last 14 days. However, it quickly corrected downward within the hour.
Bitcoin’s Rise Sparks Market-wide Rally
The fall in the price of Bitcoin left investors panicking and led to some panic selling that dragged the cryptocurrency to a low of $18,540 on Wednesday morning. However, the $18,540 level appears to be the bottom of the ongoing recent downturn that has now come to an end.
As the price of Bitcoin fell, altcoins followed. This isn’t a surprise as the price of the largest cryptocurrency per market capitalization has also been known to drag the rest of the market. Some tokens are still in the red but for some, Ethereum Classic, for example, is currently up by 15% at the time of writing.
While the reason behind the current surge is unknown, some analysts stipulate that it was due to a change in the confidence of market participants. If Bitcoin holds the line above the $21,200 support for the rest of the weekend, it would have maintained some stability. This would also mark the end of the bear run.
At the time of writing, the largest cryptocurrency per market capitalization was selling at $21,209.48, indicating a 9.84% rise in price over the last 24 hours. The 24-hour low was $19,145.30 and the high was $21,275.51.
Ethereum (ETH) also benefited from the rally trading at $1,725.54. This means it was up by 5.61% within the last 24 hours. ETH is expected to maintain some volatility in the next few weeks thanks to the upcoming software update. The said software update is going to be a game changer for ETH and the entire ETH community.