After a 48-hour correction period that saw Bitcoin and other altcoins fall to their swing lows, the cryptocurrency ecosystem has begun to show signs of recovery. Many were concerned about Evergrande’s possible bankruptcy in China and feared it would lead to a global financial crisis.
These worries were temporarily put to bed after the real estate company was able to reach an agreement with bondholders. This allowed it to avoid technical defaults on its obligations and helped to ignite a recovery in the cryptocurrency market, which lifted Bitcoin (BTC), to $44,000 per day.
Cointelegraph Markets Pro and TradingView data show that Bitcoin prices have rebounded 11.3% since hitting a low of $39 572 on Sept. 21. The asset traded at close to $43,400 at the time.
Chart for BTC/USDT 4 hours TradingView
After comments by Jerome Powell, Chairman of the United States Federal Reserve, the Bitcoin price spike of midday was due to a sudden increase in demand for Bitcoin (BTC). Powell explained that the central banking will continue with its current monthly bond purchases for the near future. Powell indicated that an increase in interest rates could be possible as early as 2022.
The regulatory headwinds are being resisted by the crypto market
Apart from Evergrande’s developments, the recent comments by Chairman Gary Gensler of the U.S Securities and Exchange Commission (SEC), have been heavily impacting the markets. The regulator reiterated plans to direct SEC to crackdown on cryptocurrencies and the steadily growing stablecoin market.
On Wednesday, the bearish market conditions following these comments are almost gone. A market-wide recovery started to take shape after comments from Fed. These comments continued into the afternoon and were led to Bitcoin’s recovery at $44,000 support and Ether (ETH’s) rally to $3,000.
The Crypto Fear & Greed Index is a reflection of the larger impact Evergrande’s regulatory concerns have had upon the market. It is now at extreme fear again after being neutral the week before and in the extreme greed zone during August.
Fear & Greed Index. Source: Alternative
Related: Altcoins experience a 35% jump after Bitcoin reclaims 43,000
Altcoin is populated by green shoots
The market rebound on Sept. 22 has helped boost the prices of most top 200 cryptocurrencies. Stablecoins were the exception, as traders looked to move on from the sidelines to open new positions.
Everyday cryptocurrency market performance. Source: Coin360
After an increase of 32% over the last 24 hours, Enzyme (MLN), an Ethereum based decentralized financial protocol, is currently the top gainer. It trades at $160.30 and has traded at that price since the beginning of the writing. COTI traded at $0.385, having gained 21%.
Notable performances also include a 22% rise in Arweave’s (AR) price and a 21% rise in Perpetual Protocol’s (PERP) price.
The total cryptocurrency market is now worth $1.947 trillion. Bitcoin’s dominance rate at 42.1%.
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Eileen Wilson –Technology and Energy
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