Bitcoin, which has been swinging wildly throughout this week, has suddenly rallied back to over $8,000 per bitcoin, somewhat putting to rest investor and trader fears the recent bitcoin bull run may have already ended.
Bitcoin, up around 10% over the last 24 hour trading period to touch $8,028 per bitcoin on the U.S. Gemini exchange, has bounced back after a sell-off that seemed to have been triggered by a large volume sale on the Luxembourg-based Bitstamp exchange earlier in the week, causing panic selling.
Meanwhile, bitcoin cash and binance coin led the cryptocurrency market higher, each gaining over 11% over the last 24 hour trading period, while ethereum, Ripple’s XRP and litecoin all gained around 7%.
The total bitcoin and cryptocurrency market capitalization, which lost some $30 billion in a matter of minutes on Friday morning, has now recovered almost all of that value and is back around $250 billion, according to data from CoinMarketCap which tracks most major cryptocurrencies.
After Friday’s sell-off, many analysts remained confident the bitcoin and wider cryptocurrency market would recover.
“Bitcoin’s blip appears to have been caused by a significant sell order placed on the Bitstamp exchange early [Friday] morning, which triggered selling across other exchanges. Whether this order was a deliberate dump or a fat finger error remains to be seen,” said Simon Peters, an analyst at brokerage eToro.
“Given the positive sentiment in the market over the past few weeks, it’s likely that the price will recover soon. However, this drop is a stark reminder that crypto-assets still operate in a nascent market, which is susceptible to significant price moves by whales.”
The bitcoin price has been swinging wildly this week, living up to bitcoin’s volatile reputation. CoinDesk
Bitcoin and cryptocurrency technically data is also showing the bitcoin price could be heading higher, with well-known bitcoin trader Eric Choe saying he expects the digital token to reach $22,600 sometime in 2020, which would be a fresh bitcoin all-time.