Despite this, the world’s largest digital currency has lost over 30% of its market cap since peaking in mid-April.
The larger crypto market also looks battered.
Several digital currencies are still showing double-digit loss percentages from what they were before the latest turmoil.
And all crypto bleedings point to a big warning: invest at your own risk.
Since May 12, the global cryptocurrency industry has lost more than 30% of its total market value, according to data from CoinMarketCap.
As of this morning, the value of the global crypto market had fallen to nearly $ 2.3 trillion, from over $ 3.2 trillion last week.
This week’s massive sell-off came on the heels of China’s crackdown on cryptos.
In response, Bitcoin fell to just over $ 38,700 as digital currencies sold everywhere.
But investors shouldn’t be surprised at the volatility, William Quigley, managing director of crypto-focused investment fund Magnetic, said on CNN Business’s live digital broadcast. Markets now.
Cryptos are still a relatively new asset, Quigley noted, and therefore are much less predictable than more traditional investments.
“Also keep in mind that we all tend to focus on day by day, week by week. But that’s not how most people buy cryptocurrencies, or even stocks,” he said. Mr Quigley said.
Meanwhile, Ethereum co-creator Vitalik Buterin told CNN Business he believes cryptos are in a bubble.
And it’s hard to tell when the bubbles will burst.
Then again, the momentum could continue to build: since the start of the year, Ethereum and Dogecoin, a joke turned crypto, have increased in value by almost 290% and over 8,000% respectively – even after holding on. account of the recent rout.
Bitcoin has risen by more than 40% during this period, according to data from Coindesk.
Bubble or not, the crypto landscape seemed to be on the road to recovery today.
“The bigger the drop, the bigger the rebound,” Fawad Razaqzada, market analyst at ThinkMarkets, said in a note.
Bitcoin is up around 18% and stood at over $ 54,000 today.
Ethereum rose 22% to around $ 3,700.
“But it remains to be seen whether the recovery will hold up,” Razaqzada added.
“Cryptos will likely remain volatile for some time as speculators weigh the impact of the China ban and Tesla’s turnaround against recent growth in institutional interest.”
Tesla, which announced a $ 1.9 billion investment in bitcoin in February and said customers could use it to pay for its cars, reversed the latest move last week, citing the environmental impact of the bitcoin mining.
JPMorgan strategists said earlier this week that institutional investors were exiting cryptos to revert to gold, although it is not yet clear why.