After crashing to their lowest prices since summer 2020 last week, Bitcoin and Ethereum have begun to recover. The world’s two biggest cryptocurrencies are both up around 8%.
Bitcoin currently trades at around £36,400, about 8% higher than it was this time yesterday, but around 10% down from Tuesday last week, when it traded for over $42,000.
Ethereum is worth around $2,400 at the time of writing, about 9% higher than it was yesterday, but a staggering 22% down from prices this time last week, when it traded for over $3,200.
Overall, the global crypto market is in recovery. Its market capitalization is currently around $1.65 trillion, which is 7.6% up from yesterday.
Altcoins lead
They’re not even the biggest risers in the top fifteen cryptocurrencies by market cap today. Polkadot grew 12% overnight, while Avalanche is up 15% in the last 24 hours.
Metaverse and layer 1 cryptocurrencies are doing particularly well today. Cosmos and Fantom led the charge with overnight surges of 15% and 19% respectively.
Some of the excitement could be down to the fact that crypto investment company Grayscale is reviewing 25 new cryptocurrencies, including high-profile Layer 1 and metaverse tokens.
Previous Grayscale announcements of this type have typically presaged the launch of new Grayscale trusts for the announced cryptocurrencies, akin to its massively successful Grayscale Bitcoin Trust.
The broader market has seen a large sell-off this week among tech stocks, with the price of many big companies plummeting. This in turn may have contributed to the crypto market’s recent crash.
Other fingers have pointed to the possibility of rising inflation, with interest rate hikes expected soon. The U.S. Federal Reserve will outline an economic roadmap after its two-day policy meeting, which starts today.
Disclaimer
The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.