After a massive crash over the past couple of weeks, the Bitcoin and Ripple price has started to rebound over the last 24 hours.
The website CoinMarketCap measures the 100 largest cryptocurrencies, and today reported gains for 98 currencies over the last 24 hours as of 7 am ET. the Bitcoin and Ripple price made notable jumps, with Bitcoin jumping 13 percent to reach $11657 and Ripple making a gigantic stride of 43 percent to reach a price of $1.52. Although the Bitcoin and Ripple price increase was notable, the two highest performers were Tron and BitConnect, which increased by 99 percent and 284 percent respectively. The jump in BitConnect price is especially surprising, considering that the exchange was recently outed as an alleged Ponzi scheme and subsequently closed.
Even though the Bitcoin and Ripple price has made a gigantic jump, the prices are still much lower than they were at the end of December – an outstanding month for cryptocurrency that saw record highs for the majority of the investments.
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In early January, however, the currencies took a massive dip, with the Bitcoin price plummeting thousands of dollars from its high of almost $20000. Considering the massive coverage of the Bitcoin and Ripple price in the news, many hopefuls took the initiative to invest in these new currencies only to suddenly see a large drop just a few weeks later – reinforcing the idea that these currencies are anything but a safe investment.
Inverse reports that experts believe that the technology behind Bitcoin and other cryptocurrencies will remain in use even if the coins themselves were to fall, due to groundbreaking ideas like the blockchain ledger used to securely distribute data. But it seems like the currencies may start to bounce back, despite concerns indicating the opposite to be true.
The Cryptocurrency Crash
After the massive crash in Bitcoin and Ripple price, many were concerned that recent events in the world of cryptocurrency would keep the currencies from once again reaching those massive highs. Over the course of a few weeks, multiple rumors and events greatly affected the Bitcoin and Ripple price, leading to the massive crash following the meteoric rise.
A rumor regarding the fact that China may be increasing regulation regarding bitcoin mining within the country is concerning, as many bitcoin organizations call the city home due to the low price of electricity within the country. This news comes after previous actions by the government that have hampered the cryptocurrency scene, such as the shutdown of exchanges and current steps towards banning initial coin offerings.
Israel also had an effect on the Bitcoin and Ripple price, expressing concern over the lack of regulation around the currency and taking steps to look into regulation within the country through the government’s financial divisions.
In addition to issues from governments, sites like CoinMarketCap actually contributed to the drop in Bitcoin and Ripple price with their reporting. With a decision to exclude data collected from South Korea due to the currencies’ unusually high value in the country, investor confidence plummeted – as did the value of many cryptocurrencies. The recent fiasco with Bitconnect was also a problem, with many people losing a significant amount of money in a “Bitcoin loaning” structure that was allegedly formatted like a Ponzi scheme.
Invest With Caution
All these factors and more have had an impact on the downturn of the currencies, but it appears as if the Bitcoin and Ripple price, along with the price of the majority of other cryptocurrencies, is starting to turn around from this massive drop.
Only two coins dropped in value over the past 24 hours – Neblio dropped 2.8 percent to $28.33 and Tether dropped one percent to $1.01. While Tether did drop slightly today, it was one of only two cryptocurrencies to actually increase in value during the massive crash on Tuesday.
It’s too early to call this a true recovery for the cryptocurrency scene, and many are currently viewing the Bitcoin and Ripple price increase with cautious optimism. If there’s one thing that’s certain, it’s that these coins are incredibly volatile. There’s no telling what may happen in terms of cryptocurrency news over the next few days, and the price could either continue to rise or turn right around from this momentary upturn and continue to crash lower and lower.
Many experts agree that while cryptocurrencies may continue to see rapid growth, they’re by no means a safe investment. Those who got in on the ground level with these currencies have seen massive returns with Bitcoin and Ripple price increases, and this recent crash has people worried about the end of the crypto scene. However, these investments have bounced back before, so it’s definitely a real possibility that this is the start of a return to the high values we were enjoying at the end of last year.