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The world’s largest cryptocurrency is up 7.2% in the last 24 hours, having returned to the levels above $31,500 last seen on Monday morning. This is the second time since the mid-April crash that Bitcoin has tested the $29,000 support level and successfully bounced back.
Other major cryptocurrencies have also seen a recovery, with Ethereum (ETH) rising by 9.4% above $1,920. Other notable gainers include Polygon (+27.3%), Dogecoin (+19.1%), Polkadot (+13.2%), Cardano (+12,2%), and Binance Coin (+9.4%).
The move marks a swift reversal from the bearish sentiments that dominated the market over the last 48 hours when Bitcoin fell below $30,000, dragging many other cryptocurrencies into the red.
Some investors feared Bitcoin would drop deeper toward $25,000 as the broader stock markets plunged amid fears that a spike in the Delta variant of COVID-19 cases would again halt the global economy.
The bearish news continued after the New Jersey attorney general issued a cease and desist order to crypto lending firm BlockFi–one of the prominent companies in the industry, ordering it to stop offering interest-bearing accounts in the state.
Whether the prices will stay above the psychological $30,000 level remains to be seen–despite the recovery, the Crypto Fear & Greed Index, an alternative tool analyzing market sentiments, hit its lowest score of 10 since March 2020, which indicates “extreme fear.”
Venture investors have nonetheless demonstrated their confidence in the long-term future of the industry, as popular crypto exchange FTX raised a record-breaking $900 million on Tuesday, bringing its valuation to a whopping $18 billion.
The market could be in line for more shake-up later today, however, as Tesla CEO Elon Musk joins the "The B Word," a conference organized by the Crypto Council for Innovation, where he’ll debating Bitcoin with Jack Dorsey, the CEO of Twitter and Square, and Cathie Woods of ARK Invest.