The cryptocurrency ecosystem is showing signs of recovery on September 22nd after a 48-hour correction period when bitcoins and altcoins were traded in a staggering downturn. It is understood that equity investors and crypto investors were worried about the possible bankruptcy of the Chinese real estate company Evergrande, and many fear that a possible default could lead to a global downturn in financial markets.
Those concerns were shelved after the real estate company managed to reach an agreement with bondholders and technically avoid a default, which helped spark a recovery in the cryptocurrency market that pushed Bitcoin (BTC) to a daily high. Price up to $ 44,000.
Cointelegraph Markets Pro and TradingView data show that since hitting a low of $ 39,572 in the evening hours of September 21, Bitcoin is up 11.3% to a daily high of $ 44,021 and assets are trading at around $ 43,400 in writing. …
4-hour BTC / USDT chart. Source: TradingView
The rise in Bitcoin (BTC) over dinner came after comments from the US Federal Reserve Leader Jerome Powell, who made it clear that the central bank plans to maintain the current level of monthly bond purchases for the foreseeable future. Powell also indicated that a rate hike could occur as early as 2022.
Cryptocurrency Market Resists Regulatory Winds
Aside from Evergrande events, recent comments from SEC Chairman Gary Gensler have been onerous for the markets as the regulator confirmed its plans to ask the SEC to take action against the burgeoning cryptocurrency and stablecoin market.
The bearish market conditions that followed those comments faded on Wednesday as an improvement in market scale began to form following the Fed’s comments that ended in the afternoon, led by Bitcoin’s recovery to $ 44,000 support and a rally in Ether (ETH) to 3,000. dollars.
Evidence of the greater impact of Evergrande and regulatory requirements on the market is reflected in the Crypto Fear & Greed Index, which again registers as strong fear after remaining neutral last week and excessive greed in August.
Fear and greed. Source: alternative
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The market swings on September 22 helped drive up the price of most of the 200 cryptocurrencies, with the exception of stack coins, which were in the red as traders seemed to leave the scene and take new positions.
Daily cryptocurrency market performance. Source: Coin360
Enzyme (MLN), the Ethereum-based decentralized financial protocol, is the biggest winner at the time of writing, trading at $ 160.30 after rising 32% in the past 24 hours. COTI also rose 21% to $ 0.385.
Other notable offerings include a 22% increase in Arweave (AR) and a 21% increase in the Perpetual Protocol (PERP) reward.
The total market value of the cryptocurrency is now $ 1.947 trillion, and the bitcoin dominance rate is 42.1%.