Cryptos bounce back a day after rout, Bitcoin surges over 19%

Another popular cryptocoin, Dogecoin saw a rise of 11.42 percent and was trading at $0.0414725 with the market cap of $53.72 billion.

May 20, 2021 / 08:09 PM IST
In December 2020, Roubini had dubbed Bitcoin and other cryptocurrencies as “sh-tcoins,” which, according to him, have no place in retail or institutional investor portfolios.

In December 2020, Roubini had dubbed Bitcoin and other cryptocurrencies as “sh-tcoins,” which, according to him, have no place in retail or institutional investor portfolios.

A day after cryptocurrency Bitcoin plunged by 30 percent, its value rose by 19.33 percent to $42,107.19 on May 20, according to cryptocurrency trading app Coindesk.com.

Consequently, the market value of Bitcoin stood at $787.99 billion.

Meanwhile, another digital currency Ethereum, developed by Vitalik Buterin, was trading 13.46 percent higher at $2886.63 and with this, its market capitalisation was at $335.51 billion.

Another popular cryptocoin, Dogecoin saw a rise of 11.42 percent and was trading at $0.0414725 with the market cap of $53.72 billion.

Cryptocurrency bloodbath: Here's what you need to know

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Other currencies too joined the rebound and were up in the range of 20-55 percent. Cardano was up by 22.42 percent to $1.88, while Bitcoin cash (BCH) was trading at $848.35 and was up by 15.29 percent, at the time of filing the copy.

Earlier on May 19, Bitcoin declined over 30 percent to $30,000, wiping out more than $500 billion in value from the coin’s peak market value. Also, Ethereum tanked more than 40 percent.

The decline in the two most traded cryptocurrencies was sparked last week by Elon Musk's reversal on Tesla taking bitcoin as payment, followed by other tweets that caused confusion over whether the carmaker had shed its holdings of the currency.

In the meantime, Zerodha founder Nithin Kamath has preferred to stay away from investing in Bitcoins, despite its rising popularity in India.

"Personally I don't understand Bitcoin as an asset class so I don't invest in it. I don't know what it is solving for. The only reason to buy Bitcoin today is the hope that someone will buy it from you at a higher cost" he said.

Following the crypto crash, American economist Nouriel Roubini on May 19 criticised the institutional investors who invested in volatile pseudo-asset 'Bitcoin' which, according to him, has no intrinsic value.

Earlier on February 23, Roubini had said that retail investors with “fear of missing out” are going to get crushed by investing in Bitcoin during its latest run higher.

In December 2020, Roubini had dubbed Bitcoin and other cryptocurrencies as “sh-tcoins,” which, according to him, have no place in retail or institutional investor portfolios.
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