No. 1 cryptocurrency rallies while Goldman warns most cryptos could go to zero Bitcoin rose Wednesday, clambering back above $8,000 just one day after the No. 1 cryptocurrency briefly dipped under $6,000. The price of a single bitcoin BTCUSD, +6.35% was recently up by 6% to $8,182, according to CoinDesk data. It has climbed as high as $8,308 intraday, but remains far below its December peak above $19,000. February Bitcoin futures on the Cboe XBTG8, +6.86% gained 7% to $8,140, while those on the CME BTCG8, +2.98% added 8% to $8,160. On Tuesday, the virtual currency fell below $6,000 to levels last seen in mid-November but then rallied as U.S. stocks SPX, +1.74% also rebounded. Wednesday’s advance comes even as a Goldman Sachs analyst reportedly said most cryptocurrencies will fall to zero, echoing what other analysts have said about their lack of intrinsic value. The bearish view also follows prominent economist Nouriel Roubini’s remark on Tuesday that crypto enthusiasts “will hold their melting bitcoins all the way down to zero.”
Cryptocurrencies are trading in the green today after a tumultuous seven days. In the last 24 hours, the total market capitalization of all cryptocurrencies has increased 25 percent to $352 billion, as per data provider CoinMarketCap. The total value had dropped to $276 billion yesterday – the lowest level since Nov. 26. Though a welcome development, that figure is still down at least 30 percent from last Wednesday's high above $500 billion. Further, it's still 57 percent down compared to the record high of $830 billion seen in January. As of writing, the top 10 cryptocurrencies by market capitalization are reporting double-digit gains. Bitcoin, the world's largest cryptocurrency by market cap, has appreciated by 22 percent in the last 24 hours, again according to CoinMarketCap. As of writing, CoinDesk's Bitcoin Price Index (BPI) is showing the average price across global exchanges at $7,845. So why the upturn? For one, market observers have told CoinDesk that the U.S. Senate's softer approach to regulating bitcoin, publicly discussed yesterday, bodes well for cryptocurrencies. Furthermore, as per technical studies, the bitcoin sell-off looked overdone and a correction upwards was overdue. BTC could also be pulling up other cryptocurrencies, given the tight correlation between bitcoin and other cryptocurrencies.