Bitcoin, the world’s most traded virtual currency, is seen making recovery attempts once again above the $ 11k mark, as the bulls struggle to make a comeback from this week’s slide to $ 9900 levels. As of writing, the spot jumps nearly 5% to $ 11,030, looking to retest yesterday’s high of $ 11,383.
There is no specific catalyst seen behind bounce while markets seek to take profits off the table after last week’s more than 25% sell-off. However, the recovery gains appear limited as the concerns over the Chinese and South Korean regulatory crackdown continue to weigh.
Also, the digital currency could remain somewhat undermined after Goldman Sachs in its research letter to the investors, warned about the increase in cryptocurrency values, citing that bitcoin is a bubble bigger than the dot-com era and the famous Dutch tulip mania.
Meanwhile, Ray Dalio, founder of hedge fund giant Bridgewater Associates, commented on Bitcoin at the World Economic Forum in Davos: "It was a bubble. It is a bubble. A perfectly good market can be in a bubble. I don't know how to value it. I believe in the blockchain technology. I think it's great, but that notion of how to trade it and how to value it is not my expertise."
Bitcoin’s rivals also showed similar trading patterns, with Ethereum up 3.76% at $ 1000, Ripple rallies 7.04% while Bitcoin cash rises 3.35%, according to the CoinMarketCap data. Meanwhile, the cryptocurrency market cap has edged higher to $ 533 billion, with Bitcoin accounting for 34% of the total market cap.
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