Bitcoin, ripple (XRP) and ethereum, after struggling recently against a massive sell-off and fears the great cryptocurrency experiment could be coming to an end, have all rallied today—sparking hopes that a so-called Santa rally, where market prices rise in the month of December, generally seen over the final week of trading prior to the new year, might have finally arrived.
The bitcoin price has added some 10% over the last 24 hours, climbing to over $3,500, according to recent prices seen on the Luxembourg-based Bitstamp exchange. The price bounce will fuel investor hopes the worst could be over for the embattled bitcoin price.
What has sparked the bitcoin rally was not immediately clear, though recent price falls , which have also hit equity markets, have left some investors eagerly awaiting a bottom to the market.
The rally comes as bitcoin investors reflect on a year that has seen some $700 billion wiped from the value of the world's biggest digital tokens, including ripple, a common name for the XRP cryptocurrency, and ethereum's ether.
Today is the one year anniversary of the bitcoin price peaking at a little over $19,000. Bitcoin has been tumbling throughout 2018 as investors worry that global regulators are about to crack down on crypto,
potentially hampering adoption, and long-expected institutional investment in the sector fails to materialize.
Bitcoin is down 83% since its all-time high, while ripple (XRP) and ethereum have also recorded similar loses. The total value of all cryptocurrencies added $13 billion to the market value today, rising to $115 billion.
Bitcoin and many other major digital tokens tanked in November after a civil war amongst bitcoin cash developers and miners caused panic and led to investors bailing out of their positions, wiping billions from market capitalizations.
Bitcoin's rally will bring relief to bitcoin bulls and the crypto faithful, who have been trying to remain upbeat in the face of market collapse, promising they have funds to wait out the so-called crypto winter bear market even as many make cuts to keep costs down.
Bitcoin business bosses have come out in force in recent days to reassure the market and investors, with the chief executive of bitcoin payments processor BitPay, Stephen Pair, predicting bitcoin and cryptocurrencies will become widely used in as little as three to five years.
Elsewhere, the CEO of the Boston-based fintech startup Circle as said both bitcoin and ethereum, the third largest cryptocurrency by market capitalization after ripple's XRP, appear to be oversold after the recent price falls.
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