The rally came after Bitcoin, the largest cryptocurrency by market capitalisation, dropped below $18,000 per digital coin on Sunday — a massive over 70% drop from its record high of $68,000 in November last year — as mayhem in the crypto market continued.
The global market cap of cryptocurrencies sank below $850 billion, which recently hovered over $1 trillion.
The second-largest cryptocurrency Ethereum also fell below $1,000 on Sunday, down nearly 80% since its all-time-high in November last year.
On Monday, Ethereum also rebounded to reach $1,133, a 20% gain over the past 24 hours.
The latest crypto crash is happening as investors are afraid of global macroeconomic conditions and the US Federal Reserve is trying to curb rising inflation.
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Overall, the prices of top cryptocurrencies declined as much as 35% last week in the wake of economic recession fears.
The global market cap of cryptocurrencies sank below $850 billion, which recently hovered over $1 trillion.
According to analysts, Bitcoin may hit a grim $14,000 this year.
The likely bottom range at $14,000 would represent a drop of around 80 per cent for Bitcoin from the $68,000 all-time high.
According to Coindesk, Bitcoin has historically experienced periods of asymptotic price run-ups followed by steep crashes, “typically played out over several months to two years”.
Cryptocurrency watchers refer to these periods as “cycles”.
