The appreciation of cryptocurrencies seems to have come to a grinding halt. For the last few months all the major cryptocurrencies saw an unprecedented increase in value but over the last 48 hours or so, these coins reported a depreciation of double digits. Major currencies have lost as much as 23%. But despite this fall, it seems that the market has rebounded quite well.

A number of major cryptocurrencies were hard hit by this crash. Bitcoin, for example, saw a dip of about 16% while Ethereum saw a crash of about 23.5%. In just two days, the entire cryptocurrency market reported an average depreciation of 20%.

The cryptocurrency market saw a huge loss. Source: TechCrunch

The total market cap of these currencies fell to a record low of $134 billion. This was a significant drop from the market cap that was recorded just a few days ago at $180 billion. This crash has really caught the attention of many and it’s a major dent in the growth trend that these currencies saw in the recent months. It is indeed a crash that will not be forgotten as fast as many people would hope. Despite all this, the market seems to have rebounded over the last few hours.

Cryptocurrencies seem to be recovering now. Source: Futurism

As we were getting into Wednesday’s trading session, the value of all the major publicly traded cryptocurrencies was going up. The market capitalization of all cryptocurrencies rose 17% from a low of $134 billion on Tuesday to hit $157 billion. The 17% jump came in just 24 hours.

Although it’s nowhere near the Saturday’s high of $180 billion, it’s a sign that the market is on the path of recovery. All the ten major cryptocurrencies have been able to record double digit growth in the last 24 hours. Litecoin, Monero, and Iota saw the biggest gains in this rally.

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Experts are confident that this upward trend will continue and the market will soon enough recover completely. While the crash is, of course, something to note, it should be remembered that even after the crash, the price of Bitcoin, for example, is double the figure recorded about 4 months ago.

The crash in the market has been attributed to a number of things. To start with, the Chinese government announced its decision to ban ICOs. The government said that the cryptocurrencies had affected the economic and financial order in China.

The crash came around the time Bitcoin rose to an all-time high. Source: TechCrunch

Some experts claim that the market was overheated and this could have contributed to the crash. It should be noted that the crash happened just around the time when Bitcoin rose to an all-time high of little above $5,000 per coin.

For people who have followed the history of this coin, you should have noticed that, in most cases, rapid and sharp gains have often been followed by a similar crash. This is also something that is very common with traditional equities. Well, nonetheless, it seems like the crash was temporary and things are looking up for the future.