Bitcoin leads huge cryptocurrency market rebound after record losses

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Bitcoin, Cryptocurrency

Bitcoin and Top global cryptocurrencies surged by between 19 and 50 percent on Wednesday following the massive sell-off that erased half a trillion dollars from the market.

Bitcoin bounced back over 30 percent to $8,500 after falling below $6,000. It is still 60 percent off the $20,000 peak seen on December 17. Bitcoin’s jump has positively affected other cryptos, as the overall market cap rebounded by nearly $100 billion in 10 hours. All 100 top currencies from Coinmarketcap were trading higher Wednesday, after nearly a month of declines. Ethereum added 30 percent to $824, ripple rose to wave of 20 percent to $0.78.

Wednesday’s uptick comes despite Goldman Sachs’ prediction that most cryptocurrencies will fall to zero, repeating what other analysts have said about the absence of intrinsic value in them. Prominent economist Nouriel Roubini also said Tuesday that investors “will hold their melting bitcoins all the way down to zero.”

It is unclear, what is driving the market for a return. Some analysts are saying that speculators are just closing their short positions on bitcoin, propping it up before another meltdown leading to even lower prices.

This week, a Finder.com website has polled several entrepreneurs and investors in cryptocurrencies, and despite the recent bearish news, they forecast that bitcoin will reach $15,000 by March and exceed $43,000 by year-end.

Cryptocurrencies have fallen dramatically over the last few weeks amid tighter bank regulation and government crackdowns and ongoing US investigation into market manipulation.

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