Cryptocurrencies are trading in the green today after a tumultuous seven days.
In the last 24 hours, the total market capitalization of all cryptocurrencies has increased 25 percent to $352 billion, as per data provider CoinMarketCap. The total value had dropped to $276 billion yesterday – the lowest level since Nov. 26.
Though a welcome development, that figure is still down at least 30 percent from last Wednesday's high above $500 billion. Further, it's still 57 percent down compared to the record high of $830 billion seen in January.
As of writing, the top 10 cryptocurrencies by market capitalization are reporting double-digit gains.
Bitcoin, the world's largest cryptocurrency by market cap, has appreciated by 22 percent in the last 24 hours, again according to CoinMarketCap. As of writing, CoinDesk's Bitcoin Price Index(BPI) is showing the average price across global exchanges at $7,845.
So why the upturn? For one, market observers have told CoinDesk that the U.S. Senate's softer approach to regulating bitcoin, publicly discussed yesterday, bodes well for cryptocurrencies.
Furthermore, as per technical studies, the bitcoin sell-off looked overdone and a correction upwards was overdue. BTC could also be pulling up other cryptocurrencies, given the tight correlation between bitcoin and other cryptocurrencies.
However, the leading cryptocurrencies have regained poise today, but are still not out of the woods if we consider the negative week-on-week performance.
In particular, NEO stands out with a 50 percent appreciation in the last 24 hours, although on a weekly basis, it is still reporting a 30 percent decline.
Also, another 15 percent rise in litecoin prices and the cryptocurrency would be reporting gains on a week-on-week basis.
By Omkar Godbole