Cryptocurrencies saw a sharp bounce higher after violent selling in the past two weeks despite equity markets not showing big moves to the upside.
As of 8:42 a.m. Singapore time, the market capitalization or value of the entire cryptocurrency market rose around $23.8 billion over the past 24 hours to $175.98 billion, according to data from Coinmarketcap.com.
Major cryptocurrencies saw big rallies. At around 8:30 a.m. Singapore time, Bitcoin had surged nearly 16% in the past 24 hours to $6,243.55, according to Coindesk data. Ethereum was trading 17.5% higher at $139.63, while XRP rallied over 12%. They later pared some of those gains.
The rebound in prices followed two major bouts of violent selling earlier this month. On March 8, the cryptocurrency market saw over $26 billion wiped off its value following a huge drop in oil prices.
Then an even worse round of selling last week saw the value of the entire cryptocurrency market plummet around $93.5 billion within 24 hours. Bitcoin saw its price plunge around 48% wiping out all its gains for the year. As the selling continued into the next day, bitcoin hit a one-year low of $3,867.09.
Despite Friday’s bounce, bitcoin is still trading lower than where it was at the start of the year.
Over the past few years, some investors have likened bitcoin to “digital gold,” arguing it can function as a safe haven asset when markets are facing turmoil. However, the cryptocurrency has behaved more like a risk asset and sold off as equity markets dropped.