The bitcoin price is up 16.7% from Saturday’s low. Ether followed with a 29% gain.
Bitcoin rallied $20,000 on Sunday afternoon to $20,580 a coin, up 16.9% from Saturday’s low.
The rally comes just a day after bitcoin, the largest cryptocurrency by market cap, fell below $20,000, its lowest price since November 2020. As of press time, bitcoin is trading at around 20,383 USD/coin.
Bitcoin’s price surge reflects traders’ renewed appetite for risk, even as the market continues to digest the fallout surrounding crypto lending giant Celsius and crypto investment firm Three Arrows Capital.
Jordi Alexander, CEO of Selini Capital, told CoinDesk in a Telegram message: “Ready buyers are waiting for cash to buy cheap coins. They have to determine if they will buy another 20% or this is their chance. If they wait too long, they will have to chase higher.”
Alexander added: “The key question is whether the forced sales we’ve seen are ending, or if there are still struggling sellers.“
Early Saturday, the bitcoin price plummeted below $20,000 and dropped to $17,601 by the end of the trading day. The drop also brought bitcoin below the all-time high of $19,783 it reached in December 2017, a level many crypto traders believe bitcoin will not fall below.
Ether, the second-largest cryptocurrency by market capitalization, posted an even bigger bounce after falling to as low as $880 on Saturday. As of press time, ETH is trading at $1,133, up 20% over the past 24 hours and up 29% from Saturday’s low.
As of now, Bitcoin is still down 56%, while Ether has lost 69% of its value.