After a sharp drop, prices of cryptocurrencies are making efforts to regain earlier losses.
On Bitfinex trading floor, Bitcoin surged by over 5% to trade at above 6,400 US dollars a token.
Experts say that the rally in the cryptocurrency market is propelled by expectations of an important event. In June, a US investment company in tandem with a developer of crypto assets applied to the US Security and Exchange Commission for establishment of a crypto fund. The Commission delayed taking a decision until September 30.
The news enabled cryptocurrencies to win back some losses, though without spikes in prices. For example, Ethereum, the second largest cryptocurrency in terms of market capitalization, regained almost 6% to over 280 US dollars per coin. However, Ethereum has not been able to recover in full from a 20% plunge earlier this week.
Ethereum fell in value on the back of recent developments in the market. Investors, who participated in the ICO, are withdrawing their funds with the aim of covering expenses. This move is justified by concerns about lingering bearish trend in the market. Explaining the ongoing bearish trend, experts draw a parallel with the last year and tell about the opposite effect. In 2017, robust demand for cryptocurrencies created a bubble in the market. This year, the market is developing in the opposite way. So, speculators prefer safer conventional trading instruments.
Besides, crypto traders cheered a speech by Coinbase CEO and co-founder Brian Armstrong at a summit in San Francisco. He said that the cryptocurrency market can go through a series of bubbles and correctional phases but eventually market participants could be happy about cryptocurrencies.
This viewpoint is flatly rejected by skeptics who say that crypto traders will face the twilight of their career in the near future. On the other hand, some experts believe that the best time for the cryptocurrency market is yet to come.
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