Bitcoin, along with other major cryptocurrencies ethereum, Ripple’s XRP, litecoin, bitcoin cash, and EOS, have suddenly roared back after a sharp sell-off last week.
The bitcoin price has added almost 8% in the last 24-hour trading period to climb over $8,500 per bitcoin on the Luxembourg-based Bitstamp exchange, with rival blockchain platforms ethereum and EOS both jumping around 10% over the same period.
Ripple’s XRP, litecoin, and bitcoin cash meanwhile, all added around 8%, adding some $15 billion to the value of the world’s combined cryptocurrencies in a matter of hours.
The reason for today’s sudden market bounce-back were not immediately clear, though bitcoin industry giants coming together to rate different popular digital tokens may have boosted investor confidence.
“Investors will be pleased to see that October has started on a positive note with buyers coming to the market,” Marcus Swanepoel, chief executive of London-based bitcoin and crypto exchange Luno, wrote in a note.
“There is a growing consensus that the recent loss in value was directly linked to the physical contracts being offered through Bakkt. As the cryptocurrency market develops, changes to structure or new products will always have the potential to upset the price, but this is all part of the growing process.”
Last week, the bitcoin price plummeted, dragging down ethereum, Ripple’s XRP, litecoin, and bitcoin cash, after a disappointing early trading session for the closely-watched Bakkt bitcoin futures platform.
Bitcoin and cryptocurrency watchers had hoped Bakkt’s launch, a much-hyped platform that boasts software giant Microsoft and coffee chain Starbucks among its partners, would herald the next big leap higher for bitcoin.
Bakkt, owned by New York Stock Exchange parent company Intercontinental Exchange, allows traders and institutional investors to swap so-called “physically” settled bitcoin futures contracts, meaning traders and investors are not able to sell more bitcoin than they actually have.
The bitcoin price has rallied hard so far this after a disastrous 2018, adding over 150% since January as some of the world’s biggest technology companies eye bitcoin, cryptocurrencies, and blockchain.
Social media giant Facebook set the bitcoin and crypto industry alight earlier this year when it revealed plans for its own bitcoin-rival, libra.