On Monday, prices of Ethereum and Bitcoin started recovering from their recent decline. During weekend they faced a sharp downside movement as traders were worried about a possible cryptocurrency bubble.
On the Coinbase GDAX exchange (U.S.-based) Bitcoin rose by 6.6% (more than $128.90) and was traded at the level of $2,081.10 by 08:30GMT. On Sunday the cryptocurrency went down by more than 13% from the level above $2,000 to the mark of $1,758.20 (the lowest position since May 16). Market players became worried and tried not to operate with large positions. Also, they remained quite concerned about future performance of the digital currency.
The improvement proposal 148 on Bitcoin will be activated on August 1. The failure to come to an agreement for the majority of the currency’ developers can result in Bitcoin’s split. In this case, the Coinbase GDAX exchange is going to temporary suspend deposit and withdrawal operations on Bitcoin and to pause trading. After the cryptocurrency showed a significant increase and reached all-time highs of $3,000 in June 11, it demonstrated a notable decline by almost 30%. However, the performance of the digital coin still indicates a 65% increase compared to the beginning of the year.
Meanwhile, another cryptocurrency and Bitcoin’s closest rival by market capitalization, Ethereum, grew up by 15.2% ($23.70) and was traded at the level of $179.64 during the early trade. It also experienced a notable drop on Sunday. The currency fell down by more than 20% and reached the level of $130.26 (the lowest position since May). The market players are worried about possible correction the cryptocurrency can undergo due to its record highs. As a result Ethereum showed losses for the fourth week in a row. After the mid-June all-time highs of $400, the price of the currency went down by approximately 55%.
Other cryptocurrencies, including Litecoin, Ripple, and Dash also demonstrated declines in the range from 15% to 25% during the weekend. However, they started rebounding afterwards. The cryptocurrency space reached a general market capitalization peak in June at $116 billion level, and then it went down by $38 billion with almost 30% correction rate during just one month.