Crypto rebounds after brutal 24-hours

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Several popular cryptocurrencies, including bitcoin, are making a comeback after fears led to a major slump.

A pair of leading cryptocurrencies are on the rise after a huge slump in their value in just 24 hours.

Bitcoin has surged back to positive gains in its value on Sunday morning after its price plummeted to about $A67,000, on Friday morning. It is now more than $A69,900.

The price of Ether also dived to a low near $4990 on Saturday although has since regained some ground.

Shiba Inu has also been regaining ground since Saturday after seeing its value fall significantly.

On Sunday about $570 billion was estimated to have been wiped off the overall market capitalisation of cryptocurrency, with the coins dropping from $3.7 trillion on Friday to $3.1 trillion on Sunday.

At the peak of its decline, Bitcoin lost a whopping $14,000 in just 60 minutes despite the currency hitting a new high of $98,000 just a few weeks ago.

Other leading currencies like ethereum, Binance‘s BNB, solana, cardano and Ripple’s XRP also recorded drops of around 10 per cent.

The latest crash can be linked to fears of government regulation, with a leading US investor, Louis Navellier warning that the US central bank could start “tapering” crypto. Should this occur, Mr Navellier warned Bitcoin could drop below $10,000 – a figure which hasn’t been seen since early 2017.

“The Fed is tapering, and this should create a correction in risk assets, of which bitcoin is a part,” Mr Navellier wrote.

“The more the Fed tapers, the more volatility we should see in both stocks and bonds — and yes, bitcoin, too.”

Earlier this week the US Securities and Exchange Commission (SEC) rejected WisdomTree’s application for a spot bitcoin exchange-traded fund (ETF), according to CoinDesk.

The rejection comes after the financial institution WisdomTree launched four cryptocurrency indices in the US and Europe.

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