Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) both shot up on Thursday night as the global cryptocurrency market capitalization rose 4.92% to $1.93 trillion.
What Happened: The apex cryptocurrency rose 4.75% to $43,866.79 over 24 hours. Over a seven-day period, BTC has fallen 2.11%.
ETH traded 4.9% higher at $3,029.68 over 24 hours. For the week, the second-largest coin by market cap fell 3.4%.
See Also: How To Buy Ethereum (ETH)
Dogecoin (CRYPTO: DOGE) was up 2.38% at $0.20. Over a seven-day trailing period, DOGE has declined 9.7%.
Qtum was the top 24-hour gainer on Thursday, as per CoinMarketCap data. The coin soared 18.67% to $10.83 over 24 hours. For the week it has dropped 0.49%.
QTUM, a token of a proof-of-stake smart contract blockchain platform, rose 12.68% and 12.42% against BTC and ETH respectively over 24 hours.
Why It Matters: Bitcoin has staged a recovery beyond the $42,000 mark in a week marred by regulatory uncertainty in light of China’s most recent Bitcoin ban.
Ballet Crypto found and CEO Bobby Lee said this week that he was “very bullish on Bitcoin, especially for an end-of-year rally, a FOMO rally this year.”
“So I expect Bitcoin prices to break out again in the next few weeks and months,” said Lee in a Bloomberg interview.
Lee pointed out that China was not done with cryptocurrencies and this was not “the final nail in the coffin.” He said that would be when the country makes crypto assets illegal to hold. That has not happened yet, as per the industry veteran.
On the China crackdown, Lukas Enzersdorfer-Konrad, chief product officer at Bitpanda, said in an emailed note, “China has cracked down on cryptocurrencies multiple times in the past, and almost every time prices went down but quickly recovered right after.”
“The price drop was significant, but it’s worth noting that long-term on-chain data remains firmly positive, potentially indicating that this might be a buy-the-dip opportunity once Bitcoin’s price finds support,” wrote Enzersdorfer-Konrad.
Meanwhile, analysts expect a recovery in cryptocurrencies in October as BTC generates positive returns in the fourth quarter, reported CoinDesk citing previous data.
“Ultimately BTC needs a break (daily price close) above $47,000 to mark a resumption of the broader uptrend,” said Michael Boutros, an analyst with DailyFX, as per CoinDesk.