Bitcoin surges past R320 000

After witnessing free fall for weeks, Bitcoin finally managed to rebound past $20 000 (R320 112) per digital coin, a gain of around 16 percent over the weekend.

The rally came after Bitcoin, the largest cryptocurrency by market capitalisation, dropped below $18 000 per digital coin on Sunday -- a massive 70 percent drop from its record high of $68 000 in November last year -- as mayhem in the crypto market continued.

The global market capitalisation of cryptocurrencies, which recently hovered over $1 trillion, sank below $850 billion.

The second-largest cryptocurrency, Ethereum, also fell below $1 000 on Sunday, down nearly 80 per cent since its all-time-high in November last year.

Yesterday Ethereum also rebounded to reach $1133, a 20 percent gain over the past 24 hours.

The latest crypto crash is happening as investors are afraid of global macroeconomic conditions and the US Federal Reserve is trying to curb rising inflation.

Overall, the prices of top cryptocurrencies declined as much as 35 percent last week in the wake of economic recession fears.

According to analysts, Bitcoin may hit a grim $14 000 this year.

The likely bottom range at $14 000 would represent a drop of around 80 percent for Bitcoin from the $68 000 all-time high.

According to Coindesk, Bitcoin has historically experienced periods of asymptotic price run-ups followed by steep crashes, "typically played out over several months to two years".

Cryptocurrency watchers refer to these periods as "cycles".

BUSINESS REPORT