The bitcoin prices staged a smart recovery over the last 24 hours, carrying the rest of the cryptocurrency market with it as it moved ahead by over 10% over the last day. It has now showed a bit of strength after the shock news from China, where the regulatory authorities have banned the ICOs, and the traders and investors would hope that the recovery would continue and show to the world that it is here to stay. This is indeed a very serious challenge to the market, just after the fork in August, and the way that the bitcoin market responds to this challenge is likely to determine the future of this market.
Bitcoin Prices Recover by 10%
The Chinese authorities have not only stopped any new ICOs but have also made it clear that the funds needed to be returned to the investors of the ICOs that were launched previously. This is likely to be the tricky part as the trail of all the funds would take a long time to be fully established. But, by not banning mining or exchange of the bitcoins, they have left the door open for the market to be regulated and make a comeback in a more mature and regulated form in the near future and this is what the industry would be banking upon.
The Ethereum prices have also moved higher over the last 24 hours after crashing below the $300 mark on panic selling after the release of the Chinese news. They have also recovered by over 10% and now trade above $320 as of this writing. Like bitcoin, the traders would hope that the ETH prices also continue to make their recovery during the short term and that the market would get back to normal in the short term.
Looking ahead to the rest of the day, we believe that the bitcoin and the eth prices would consolidate with a bullish bias as the investors show their confidence in the market by viewing this fall as a buying opportunity rather than trying to sell and adding to the panic.
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This article was originally posted on FX Empire
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