Cryptocurrency Market Continues Higher as Bitcoin Price Clears $6,600

Cryptocurrencies broke higher ground Tuesday, with more than $17 billion flowing back into the market in a sign that the corrective rally had further room to accumulate.

Market Update

The cryptocurrency market reached a high of $276.3 billion on Tuesday, as the corrective rally extended to bitcoin and the major altcoins. At the time of writing, the market was valued at $273.5 billion.

Bitcoin climbed 4.5% to $6,640, its highest in almost two weeks. The largest cryptocurrency by market cap is in the midst of a bullish breakout, with buyers targeting $7,000 as the next major inflection point. All of last week, BTC/USD prices were contained below $6,300, which eventually gave way to Friday’s lows below $5,800.

Altcoins also put up firm gains Tuesday, with Ethereum gaining 5.6% to $477. Bitcoin cash climbed 9.8% to $804.

Ripple XRP, EOS, Litecoin and Cardano ADA each rose double-digits percentage wise, based on latest figures.

Volumes Returning

Digital currencies have added nearly $40 billion in value since Friday, when the market touched new lows for the year. Over that period, trade volumes have rebounded more than 37%.

A total of $16 billion worth of cryptocurrency traded hands on Tuesday, according to the latest data from CoinMarketCap. That was the largest 24-hour turnover since June 24.

Although there is no immediate catalyst for the recent recovery,

Despite the latest recovery, economist have warned that the ceiling on prices is limited. They continue to cite the introduction of futures trading as one of the major inhibitors to a short-term boom like the one we saw prior to December. However, this hasn’t prevented the so-called bitcoin bulls from sticking to their five-digit price forecasts.

Arthur Hayes, who heads BitMEX, recently told CNBC that $50,000 bitcoin should not be ruled out given the cryptocurrency’s ability to make outsized gains in relatively short order. As Fundstrat’s Tom Lee and others have pointed out, the vast majority of bitcoin’s gains in any given year occur over a small handful of days.

That said, others have argued that the recent downturn is not over. CNBC’s Ran Neu-Ner recently gave bitcoin a “62% chance of a bear market” where prices could test new lows of  around $5,350. In giving his assessment of the crypto market, Neu-Ner advised investors to look into infrastructure projects like Cardano or Neo, which are “really undervalued.”

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

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