Cryptocurrencies have experienced a sudden and unexpected price surge, following months of market decline.
Bitcoin has surpassed $4,000 for the first time in two weeks, continuing to break away from a months-long rout.
The rise is seeing bitcoin’s market share remain intact, as the crypto ecosystem has added $9 billion in a single day.
The recovery rally was overdue as BTC had been looking extremely oversold as its value dropped by 50 percent over the last four weeks.
The bounce in the world’s largest cryptocurrency by market capitalization is again boding well for the broader markets.
Newly-forked Bitcoin SV (BSV), currently ranked 9th largest cryptocurrency, has also seen notable volatility, up 13 percent around $102, according to CoinMarketCap data.
“The rise in cryptoasset value in the last 24 hours has many questioning if the market is experiencing a Santa Rally. The truth is crypto as a concept is still relatively new and we don’t have enough data yet to show if this is a typical December trend.
The next question will undoubtedly be how long can BTC sustain the upward momentum. Since 2018, the cryptocurrency market as a whole has been in the wars of a prolonged bear market. In mid-November 2018, the price fell even further to levels not reached since 12 months prior.