Bitcoin, Ethereum on the rise after horror week for cryptocurrency
Categories: Bitcoin US
Bitcoin bounced back on Friday after a rough few days, rising 14.08 per cent (and counting) in the past 24 hours.Ethereum, the word’s second most popular cryptocurrency, also rose 17.16 per cent after tumbling earlier this week.At the time of writing, Bitcoin now sits at $43,600, with Ethereum sitting at a flush $3,000 AUD per coin. They have now returned to the price they were at a week ago before social media devolved into hysterics over the sudden drop. Over the past week, the value of bitcoin plummeted by almost 60 per cent from its highest-ever point.An eye-watering $US200 billion ($A291 billion) was eviscerated from the crypto market in just 24 hours, as reported by CoinMarketCap, while a drop in Asian stocks linked to crypto indicated the panic was spreading. Insiders have put the crash down to concerns that the US Federal Reserve’s attempts to kerb skyrocketing inflation would push the economy into a recession, which suddenly made less secure investments like cryptocurrency a seriously unattractive option.A solution to crypto’s instability was the invention of so-called “stablecoins” – cryptocurrencies that are “pegged” against the US dollar or other traditional assets, which in theory protected them from market bloodbaths.