Bitcoin Price Surges as Other Digital Currencies Bounce Back
The largest of the cryptocurrencies, Bitcoin, has shot up to more than $4,000 today, as most of the digital currencies also rose up in value.
Bitcoin has surged a surprising 10.5 percent over the course of 24 hours proving that it is still incredibly volatile.
The other popular digital currencies such as Ethereum and Litecoin also surged during the day with the former rising more than 18 percent and the latter climbing around 11%. These figures are according to CoinMarketCap.
The recent declines in bitcoin can be attributed to several factors. After breaking through the benchmark of $5,000 on September 2nd, bitcoin has dropped to as low as $2,951.15, while the digital currency space as a whole has seen lots of ups and downs in recent times.
One of the main factors in the fluctuation is the Chinese regulations that were announced a few weeks ago. The three major Chinese exchanges which are; Huobi, OKCoin and BTCC, have all stated that they will stop trading locally in the next few months after the state declared it so.
The government of China has stated that initial coin offerings or ICOs are now illegal. This is not the first time however, that ICOs have seen regulation attempts. In July, the SEC in the United States stated that the tokens sold through ICOs, could potentially be subject to U.S. securities laws.
Due to this rising amount of legislation, cryptocurrencies as a whole have seen massive amounts of loss with the total market capitalization or market cap, dropping to a low number of $97.6 billion on September 15th. After that date, the digital assets have began to come back with the current market cap as of Monday, September 18th at $137.4 billion. This number shows that it is up 40% since September 15th.
The hopes are high that the volatility will continue to produce solid gains and the market will slow down on the reactions to news statements.