However, after dropping below $20,000, its key support and psychological level, Bitcoin flexed its muscles to rise more than 3 per cent to regain the $20,500 mark.
Ethereum rose about 10 per cent to race past the $1,600 mark and recover all the weekly losses. The second-largest crypto token has been in the news over the blockchain’s ambitious software upgrade — ‘The Merge.’
The green days must be taken with a pinch of salt, warned Sathvik Vishwanath, Co-Founder and CEO, Unocoin. “The next couple of days are expected to be slang higher.”
Among other altcoins, Avalanche, Flow, Cosmos, and Lido Dao, Compound rose in the range of 11-15 per cent during the early hours in Asia.
Despite a 5 per cent rise, the total market capitalization of the crypto space remains below the $1 trillion mark, a sign of worry for traders. Though, a 20 per cent rise in volumes helped lift sentiment.
However, market participants believe that there might be a partial recovery in the crypto space, but the overall sentiments remain muted and investors should remain cautious while picking the token on dips.
Cryptocurrencies looked to regain some lost ground, with a strong rise in major crypto tokens and altcoins outperforming them, said Prashant Kumar, CEO and Founder, weTrade to ETmarkets.com.
“While there may have been a temporary spike, global economic factors continue to play a role and the next month could see a continued bearish sentiment,” he added.
The crypto market has been reeling under severe selling pressure due to various factors, which have been adding to the woes of the 24×7 market, with no geographical boundaries.
Prolonged crypto winter, failure of projects, increasing inflation, interest rate hikes, regulatory actions, and the geopolitical crisis have been hitting hard on the digital asset class.
Edul Patel, CEO and co-founder, Mudrex said that it might take some time for Bitcoin to get back as it has not accumulated the power to make an upward move.
Market participants believe that crypto spaces are likely to remain under pressure in the near term, thanks to the hawkish comment from the US Fed chief, who hinted at another rate hike in September.
The crypto market is up, lifted by the heavyweights like Bitcoin and Ethereum, said Shivam Thakral, CEO, BuyUcoin. “The market has digested the hawkish remarks by the Fed chief to tackle growing inflationary concerns.”
The investors continue to have faith in the potential of crypto assets in times of high inflation, and the market is expected to sustain the momentum as more smart money is expected to enter the crypto market in the coming weeks, he added.
“Character cannot be developed in ease and quiet. Only through experience of trial and suffering can the soul be strengthened, ambition inspired and success achieved.” – Helen Keller