Bitcoin Rallies After Massive Weekend Selloff

Bitcoin coin design with a background of charts on top of other bitcoin coins

Bitcoin rallied 7 percent on Monday in Asia after slipping below $3,500 on Sunday. Other major currencies also rallied.

Bitcoin coin design with a background of charts on top of other bitcoin coins
Bitcoin’s price rallies after massive Sunday selloff.

Bitcoin gained 7 percent to $4,084.7 on the Bitfinex exchange, while XRP gained 7.1 percent to $0.37860 on the Poloniex exchange. Ethereum moved up 7.9 percent to $116.82, while Litecoin increased 9.6 percent to $32.095 on the Bitfinex exchange.

Bitcoin shed 10 percent on Sunday and traded as low as $3,447.58, which is its lowest level since September 2017.

Crypto markets have seen a massive decline of at least 10 to 15 percent. Stellar has also suffered  the most, down more than 20 percent and trading at $0.14.

On November 24, bitcoin plummeted lower than the $4,000 price point, breaching the threshold for the first time since September 2017. Afterwards, it dropped even further to as low as $3,585 before being stable at around $3,800.

bitcoin chip concept

The biggest cryptocurrency is lower by more than 32 percent over the past 7 days. Before it came head to head on the first massive selloff this month on November 14, bitcoin was trading firmly around $6.300, which is 40 percent higher than its present price.

Major cryptocurrency EOS briefly outperformed Bitcoin Cash in terms of market capitalization, becoming the fourth largest coin and following third top altcoin Ethereum. On the other hand, Bitcoin Cash is suffering some of the most massive losses, down around 19 percent last Sunday. Trading around $165, the cryptocurrency is down more than 56 percent over the past seven days.

Before Sunday, the total market capitalization of all cryptocurrencies slipped lower than $130 billion for the first time since mid-September 2017. As of Sunday, the total market cap was hovering just above $120 billion, daily trade volume accounting for more than $19 billion. Bitcoin’s market share now accounts for 54.5 percent.

Muneeb Ali, who is the CEO of decentralization-focused blockchain project Blockstack PBC, has recently tweeted that the industry in entering a “crypto winter,” adding that there was “no need to deny or downplay it.”

Ali has also predicted that crypto investments will likely dry up, causing shutdowns of projects in the industry. On the other hand, the current state of the market is “far from the end,” with the “next wave” expectedly bringing a “bigger market,” he said.

Earlier last week, US Securities and Exchange Commissioner Hester M. Peirce offered a pro-crypto statement, claiming that regulators “need to be willing to open the doors a little bit wider for innovation.”

During an interview last November 20, Peirce announced that she “rejects the role of gatekeeper of innovation,” and argued that this role is “very different” from the genuine mission of developing “efficient markets,” as well as safeguarding investors.

Circling back to the massive selloff Sunday, the trigger to it wasn’t clear, though it has coincided with the US Securities and Exchange Commission’s penalties against two crypto companies that did not register their initial coin offerings (ICOs) as securities.

The two companies, Airfox and Paragon Coin, are each required to pay penalties of $25,000 to compensate their investors, according to a report that cited the SEC’s statement.

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