Bitcoin and Ethereum continued to rebound and enjoy some much-needed respite as China’s plans to lift Covid-19 restrictions sent positive waves through the global economy.
Bitcoin edged cautiously higher by 2.7% to US$31,479, while its closest rival, Ethereum, slightly outpaced the more popular coin, advancing 3.0% to US$1,964.
“Bitcoin and Ethereum prices see a relief rally and the price action shows some optimism among traders,” said Naeem Aslam, Avatrade's chief market analyst.
Although the gradual price increases highlight that “there is still no herd mentality among” investors, he said, with Terra’s shambolic collapse making it harder for anyone to fully get behind crypto. Time is needed to overcome this anxiety and caution, Aslam added.
That is not to say, however, that the worst of the crypto woes is over – the bears are still in the ascendency and the negative trend is yet to fully reverse over a prolonged period of time.
“Traders fear that we could see another wave of sell-off for ETH and any equivalent action in ETH could easily trigger a similar trend for the Bitcoin price,” Aslam commented.
But it was another green day in the digital currency world on Tuesday, with 78 of the leading 100 coins changing hands in positive territory.
Cardano was the most handsome of the climbers, having surged 25% to US$0.65.
Meanwhile, lower down the pecking order, Axie Infinity was not far behind in terms of gains, up 23%.
Tron, Avalanche and doggy meme-coin Shiba Inu were the most notable fallers, having all eased 3.6% lower.