Altcoins Rally As Bitcoin Recovers to $34,000 After Brief Crash

Crypto markets recouped $76 billion in market capitalization after Bitcoin(BTC) rebounded to $34,800 on June 23. The recovery also triggered altcoins to fare better than before with Ether surging past $2000.

On Tuesday, the largest cryptocurrency slumped below $30K — a level characterized as crucial by analysts — fuelling fears of a further downgrade. BTC hasn’t traded beneath this level for nearly six months now.

The latest slide in BTC prices was driven by panic selling as China continued its crackdown on crypto mining. The country accounts for the world’s 65%-70% Bitcoin mining, but the recent spate of bans on mining operations could cut the sector’s activities by 90% in the country.

Bitcoin Market Cap Is Higher Than Before Triggering Rally For Altcoins

The short-term dip in cryptocurrencies depreciated the entire market cap, which fell by $230 billion between June 20 and June 22. However, it has since managed to retrieve $76 billion from that lost value and at the time of writing sits at $1.365 trillion.

Bitcoin’s market cap has recovered even better. In what many traders perceive as a dip-buying opportunity, the flagship crypto lost around 11% of its market cap; a loss estimated to be worth $68 billion. But as of now, BTC’s market cap has regained all losses and is in fact higher now than it was before the crash, standing at $630 billion.

As per crypto trader “CL” on Twitter, there is a cause for optimism in Bitcoin’s recovery as Binance data reveals a huge surge in open interest.

hint one

we’re seeing unprecedent pace of open interest growth on Binance, currently at 57,000 BTC it is at an all time high https://t.co/OuZX7YbukO pic.twitter.com/nSe7tq3KdX

— CL (@CL207) June 23, 2021

Altcoins Record Double-Digit Rallies

Bitcoin has always led the way for altcoins and this time’s no different. Several altcoins recorded double-digit gains as BTC improved throughout Wednesday.

Ethereum reclaimed 1.77% of its lost value, while Tether(USDT) also rose by 0.04%. Cybervein (CVT) made the biggest comeback and surged by 112%. It has since corrected to $0.0187, reflecting a jump of 62% since Tuesday.

The day’s second-biggest gains were made by ANKR, which gained 72% and ended the day at $0.082 from $0.047.

VeThor Token (VTHO) and Flow also recorded a 25% growth in their prices. Meanwhile, the internets’ favorite meme-currency Dogecoin also recovered 20% of its losses.