Cryptocurrency markets have staged a smart recovery with the total global market capitalization jumping 10.17% in 24 hours leading to press time, as per CoinMarketCap data.
What Happened: Bitcoin (BTC) was up 10.01% at press time at $37,330.57 while Ethereum (ETH) rallied 5.48% higher at $1,105.77.
Grayscale Bitcoin Trust (OTC: GBTC) closed 3.67% higher at $40.35 on Wednesday. On the same day, Grayscale Ethereum Trust (OTC: ETHE) closed 1.75% higher at $13.40.
Grayscale is making moves to dissolve its XRP Trust after having announced the liquidation of XRP positions from its Grayscale Digital Large Cap Fund (OTC: GDLC).
The decision comes in the wake of the United States Securities and Exchange Commission filing a lawsuit against XRP linked company Ripple Labs, as per a statement. XRP traded 0.99% higher at $0.29 at press time.
Most other major altcoins followed the lead of the apex cryptocurrency with Litecoin (LTC) higher by 8.27% at $145.98 and Bitcoin Cash (BCH) up by 3.5% at $491.10.
Chainlink (LINK) and Monero (XMR) traded higher by 12.31% and 3.66% at $15.79 and $164.91 respectively at press time.
A cryptocurrency that bucked the trend was Solana (SOL), which traded 4.49% lower at $3.38.
Why It Matters: Despite the jump in prices, analysts are not taking a bright view of the market.
Misha Alefirenko, founder of VelvetFormula, a crypto market maker, told CoinDesk that he has no “clear view at the moment.”
See also: Bitcoin Hype-To-Activity Ratio: What That Tells Us About The Latest Rally
“Looks like big guys stepped away to wait and see. The market has to find its own balance,” said Alefirenko.
Constantin Kogan, a partner at Wave Financial, said there was potential for downwards movement in BTC.
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“We may go even lower to $23,000,” said Kogan — adding, “There is a zone from which they [traders] will start to actively buy back.”
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