Cryptocurrencies are surging as stocks slump yet again
- Stocks opened lower again on Wednesday, but cryptocurrencies aren't seeing the same slump.
- Bitcoin was up as much as 8%, with most of its cryptocurrency peers also in the green.
Stocks opened lower again on Wednesday, continuing a week that has been marked by drastic selloffs, but cryptocurrencies are getting a boost thanks to congressional testimony from two major US regulators on Tuesday.
The total market value of global cryptocurrencies was up 25% since Tuesday, according to CoinMarketCap.com, to $488.82 billion. Bitcoin, which makes up about 35% of that total, was up 6% - or nearly $2,000- to $8,183, according to Markets Insider data.
Ethereum and Ripple's XRP, the second- and third-largest cryptocurrencies, were both up 3% at the time of writing.
Bitcoin bottomed out below $6,000 this week, and prices of all cryptocurrencies plunged, fueled by fears of a cryptocurrency crackdown in India after the country's finance minister said the government would not recognize crypto as a legitimate form of currency.
That anxiety has mostly cooled thanks to an announcement from the country's secretary of economic affairs saying the country will set up a panel to examine trading of crypto assets, and will report its findings next month.
XRP's gains come at the same time as its creating company and largest holder, Ripple, announced it had signed a large Chinese firm onto its xCurrent settlement product for international payments.
So far, 2018 has been marked by wild price swings for all cryptocurrencies, often more than 10% in either direction in a matter of hours. In January alone, bitcoin traded as high as $19,843, and as low as $5,946.
And when bitcoin moves, so too do all of the other cryptocurrencies. This is a scary sign, Goldman Sach's head of research said on Monday.
"The high correlation between the different crypto currencies worries me," Steve Strongin said. "Contrary to what one would expect in a rational market, new currencies don't seem to reduce the value of old currencies; they all seem to move as a single asset class."
Get the latest Bitcoin price here.>>
The Bitcoin 101 Report by the Business Insider Intelligence Research Team.
Get the Report Now »
- Saudi Arabia wants China to help fund its struggling $500 billion Neom megaproject. Investors may not be too excited.
- I spent $2,000 for 7 nights in a 179-square-foot room on one of the world's largest cruise ships. Take a look inside my cabin.
- One of the world's only 5-star airlines seems to be considering asking business-class passengers to bring their own cutlery
- Experts warn of rising temperatures in Bengaluru as Phase 2 of Lok Sabha elections draws near
- Axis Bank posts net profit of ₹7,129 cr in March quarter
- 7 Best tourist places to visit in Rishikesh in 2024
- From underdog to Bill Gates-sponsored superfood: Have millets finally managed to make a comeback?
- 7 Things to do on your next trip to Rishikesh