Last week was a hard week for the crypto market with major cryptocurrencies like Bitcoin and most altcoins going into a free fall not seen since 2020 and losing more than 30% of their value. Now it’s been said that the crypto leading coins Bitcoin and Ethereum market has recovered a bit.
Bitcoin is up more than 10% over the last seven days, with Bitcoin price holding $18893.77 in the time of writing, and Ethereum reclaimed even more territory, surging more than 19% to $1,189. Other cryptocurrencies that rose at least 40% over the seven days were Shiba Inu, Avalanche and Solana. In fact, all top 30 cryptocurrency managed to recover by the weekend, except for Cardano and TRON.
Changpeng Zhao, the crypto exchange Binance, has said Bitcoin may take years to recover from the recent crash. “I think given this price drop, from the all-time high of $68,000 to $20,000 now, it will probably take a while to get back. It probably will take a few months or a couple of years,” he added.
It’s been said that the recent inflation in the crypto price has been caused by supply disruptions or excessive demand. It came right after the United States’ Securities and Exchange Commission (SEC) made a statement on cryptocurrencies on Wednesday, saying that Bitcoin is a commodity and that other coins should also be classified as securities and regulated by the SEC. However, it didn’t take long for the bad news to come out.
A market bottom has been anticipated for the crypto market leading the majority of players out of the market. Several market commentators have noted that this crypto winter is different from the past ones and it’ll take years for crypto to get back to normal. The market is likely to remain in winter due to the Fed policy and whether it will decide to bring rates lower again.