Digital Currencies Are Recovering After a Market Crash
On Wednesday after a massive sell-off during previous days the crypto market started to rebound.
The total market capitalization of cryptocurrencies is near to $520 billion. It raised up almost $ 100 billion after testing the mark of $412 billion
The cryptocurrency market reached an all-time high above $830 billion nearly 10 days ago. However, the fact of trading crackdown in South Korea make the crypto space to drop down. On Wednesday digital currencies were down with bitcoin hitting a new low below $9,500.
In December the coin made a new high almost to $20,000 but at the moment it is trading near $ 10,000 almost two-times cheaper.
From specialist the downturn of the market looks natural. The founder of digital currency IOTA David Sonstebe told Business Insider the correction was not that big when viewed in context.
“At peak, over 40 individual tokens were valued north of $1 billion, most of which neither have a working product or even team,” he said. “Today’s correction might seem cataclysmic to those that are new to the scene, but crypto has been through this roller coaster numerous times before. The current market cap today is what crypto was at just one month ago.”
Brad Zastrow, the core director of global business at alternative digital coin Dash told Business Insider that in a short term such decelopments could happen, but in the long turn strong projects will survive.
“I don’t see this impacting strong projects, which have a differentiated value proposition coupled with a robust governance system,” he said.