Bitcoin recovers to $43,462 after hitting $40k level

The cryptocurrency market remained mixed on Tuesday after witnessing a meltdown a day earlier amid a broader sell-off in the global equity markets due to fears from the mounting problems at China’s embattled property giant Evergrande.

The market capitalisation decreased by 1.5 per cent to reach $2.02 trillion as of 1220 hours GMT.

The price of bitcoin (BTC), the largest cryptocurrency, shed 0.38pc to reach $43,462. With this price decrease, the market capitalisation of the biggest cryptocurrency has reached $818 billion. The bitcoin price action steadied on the day after a fresh dip saw the first test of $40,000 support since August 6.

However, ether (ETH) price went up by 1.08pc to reach $3,075. With this price increase, the market capitalisation of ETH has reached $360.7 billion.

Similarly, XRP price gained 4.13pc to reach $0.955. The market capitalisation of XRP stands at $95.5 billion after this increase.

Following suit, Cardano (ADA) price gained 7.46pc to reach $2.15. Its market capitalisation has reached $71.4 billion after this increase.

In the same way, Dogecoin (Doge) price gained 3.02pc to reach $0.215. With this price increase, the market capitalisation of doge has reached $28.1 billion.

Meanwhile, on the topic of China, analysts are adopting a longer-term approach, arguing that events such as the potential implosion of Evergrande were exactly the reason bitcoin was created. They said that BTC typically sells off in the near term with global macro uncertainties.

Historical precedent buoyed the bull cause, they said, noting that March 2020 delivered a springboard for new bitcoin all-time highs after the initial collapse to $3,600. As such, concerns such as exchange reserves rising on major exchange Binance were less of an issue, they added. Despite the slide, bitcoin has risen almost 50pc so far in 2021, they further said.