The cryptocurrency market suffered a large drop in the last couple of days, with the price of many cryptocurrencies going down, including Ethereum, bitcoin, Bitcoin Cash and Ripple. However, it seems the market has started to recover.
The prices of the first 20 cryptocurrencies on the global market went up yesterday. Ripple jumped up by 48%, while the prices of Bitcoin Cash, Cardano, Litecoin and bitcoin rose 15 to 35%.
These prices are still considerably lower than the historical maximums, but bitcoin managed to jump over 10,000 dollars per coin, ether reached 1,000 dollars again and the price of Ripple is still above one dollar per coin.
Some people from the crypto community point out the new regulations towards the cryptocurrencies announced by China and South Korea as the cause of the latest drop of the cryptocurrency market, but that seems unlikely. A more likely reason could be the closing of the bitcoin futures contracts on January 17th, when big players and institutional investors from the traditional financial market were selling their cryptocurrencies in order to cash their short-term futures contracts.
The blockchain technology and the cryptocurrency will have to prove their potential and justify their market value in the near future to avoid further large corrections of the market in the future.
