Top Cryptocurrencies Rebound From Massive Weekend Selloff

News / 29.05.2021

The wider crypto market endured an intense selloff this past weekend, with major digital assets such as BTC, ETH, and ADA parrying massive gains. The catalyst for the weekend slump was miners in China, who account for about 70% of the bitcoin supply, halting operations after authorities reaffirmed their commitment to crack down on the emerging sector. 

Following China’s renewed hostile stance on crypto mining, major exchanges such as Huobi announced that they would suspend cryptocurrency mining and some trading services to new customers from mainland China. 

Yet after last week’s 25% slump in BTC prices, the crypto market has rebounded following a flurry of bullish news from industry players. On Monday, Billionaire investor Ray Dalio reiterated that diversification into crypto is vital in the face of historic debt and a struggling US dollar. 

More positive news came from Tesla CEO Elon Musk, who appeared to soften his stance against bitcoin’s negative environmental impact. 

“Spoke with North American Bitcoin miners. They committed to publish current & planned renewable usage & to ask miners WW to do so. Potentially promising,” Musk tweeted on Monday.

Here is a look at the crypto assets recovered from the latest market pullback that saw the crypto sector shed about $830 billion from its valuation.

Bitcoin Reclaims $40K. 

The world’s leading cryptocurrency is up about 5%, erasing most of the losses seen this past weekend. As per data from CoinMarketCap, BTC is currently trading at $40,277 after gaining bullish momentum above the $38K level in the past few sessions. 

The king coin is now trading in the green after dips turned attractive at the $39,500 level, resulting in a fresh increase. Moonrock Capital’s Simon Dedic described the recent crash in crypto markets as a massive “bear trap,” adding that BTC prices are well primed to hit $100K.

Despite BTC adding significant gains in the last 24 hours, it is still down by more than 40% from the recent record high of $64,895.22 seen on April 14.

Ether Price Jumps 10% 

Ether, the second-largest cryptocurrency, mirrored bitcoin’s upward trajectory resulting in an upside move after the Sunday slump to a near two-month low.

ETH has added about 10% to its gains in the past 24 hours, breaking multiple resistance zones as it extended its recovery wave. The top altcoin is now trading above the $2,700 support at its current price of $2,862.

If ETH gains more traction, it could soon test the $2,950 resistance and possibly rally higher towards $3K in the coming sessions. 

Cardano (ADA) Sees Surge in Investment Influx

Despite shedding significant gains over the weekend, ADA shows more resilience than other digital assets in the top 10 crypto rankings. 

Cardano’s native token has experienced an impressive 36.8% rally in recent days following the blockchain project’s largest investment inflows of $10M last week. Per a report by Coinshares, the massive capital influx came in in response to “investors actively choosing proof of stake coins based on environmental considerations.” 

ADA has gained 12% over the past 24 hours amid a broader resurgence in the crypto market that has seen LINK, LTC, UNI, and SOL also register double-digit gains. 

Author’s Thoughts

Despite the extreme volatility seen in crypto markets and increasing scrutiny into space from financial watchdogs, digital assets are on the verge of mainstream adoption. 

According to Paul Nolte, portfolio manager at Kingsview Asset Management, crypto is experiencing a revolution moving from being an “outlaw currency” to something more widely used and accepted. However, Nolte reiterated the importance of clear regulation around the budding sector.

Bridgewater Associates founder Ray Dalio argues that “bitcoin’s greatest risk is its success.” He added that more folks choose to put their savings in crypto, making the emerging asset class a threat to the traditional monetary system.

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Wayne is a Blockchain enthusiast and expert in crypto trading. Currently, he covers trendy issues on digital currencies.