Cryptocurrency market update: Bitcoin, Ethereum and Ripple on the road to recovery following a huge selloff

The cryptocurrency market was virtually in shambles after Bitcoin sunk mover $1,500 during the US afternoon session. The rest of the market including the major altcoins followed Bitcoin with their own measure of the meltdown.

The crash came just a day after Bitcoin Futures that are physically settled launched on ICE-backed Bakkt exchange. The new futures contract had a drab started as reported yesterday. However, the daily volume is expected to increase over time as institutional investors get accustomed to the new trading service.

Bitcoin price update

Bitcoin is trading slightly in the positive on Wednesday at the beginning of the morning European session. Recovery has been underway since the drop to $8,135. Bitcoin has extended the bullish action to $8,744.38 (intraday high) although it opened the session at $8,533.89. Due to the presence of selling activities across the board, BTC has adjusted to a current market value of $8,541 after correcting higher 0.13% on a daily basis.

There was a significant drop in the market capitalization from $174 billion to $154 billion at the close of the session on Tuesday. A correlated increase in the trading volume from $15 billion to $25 billion signified the selloff.

Related: Bitcoin price update: BTC/USD returns to $8k levels as $600 million BTC longs liquidate on BitMEX

Ethereum market update

Ethereum was not spared by the bearish wave that hit across the entire market yesterday. The crypto dived further below $200 and even refreshed lows around $162 (primary support). Like Bitcoin, there was a drop in the market cap from $21 billion to $18 billion. At the same time, the trading volume rose to $11 billion from $7 billion according to the data by CoinMarketCap.

The 15% drop in the last 24 hours has buyers battling with the resistance at $170. The correction above $175 during the Asian session failed to gain enough momentum to attack $180.

"Ripple market update"

On the other hand, Ripple is trading at $0.2398 after correcting higher $2.6% on the day. The declines tested levels under $0.22 support before a shallow recovery fizzled out at $0.2440 (intraday high). At press time, XRP has a 24-hour trading volume of $2.2 billion and a market capitalization of $10 billion.

Related: Ripple price analysis: Massive fresh demand for XRP after testing $0.22