Bitcoin Surges Back Above $11,000, Cryptos Breathe Sigh of Relief By

© Reuters. – Bitcoin surged higher on Wednesday in a second day of gains, prompting speculation that the recent correction may have run its course.

jumped 6.75% to $11,272.4 on the Index by 12:38 PM ET (16:38 GMT).

The typically volatile digital asset has seen a rollercoaster ride since mid-June that took it from $7,888 to a 2019 high of $13,929.8 just one week ago, with gains mostly attributed to Facebook’s announcement of its own cryptocurrency known as Libra, which it plans to launch in 2020.

Amid concerns that the more-than-200% surge so far this year was far too reminiscent of the frenzy that took it to all-time highs of nearly $20,000 before it crashed to $3,000, analysts became cautious and warned of an imminent correction.

That correction appeared to rear its head last Thursday as bitcoin plunged nearly 14% and the largest crypto by market capitalization began a retracement that took it as far as $9,728.5 on Tuesday, a 30% plunge.

The panic caused a Forbes contributor to claim that the “bitcoin bubble bursts” and Nouriel Roubini, chief executive of Roubini Macro Associates, to repeat his long-term stance that there was “still a long way to less than zero as its true value is negative, not zero”.

The potential for recovery seen a day earlier, although perhaps just a break in the downward trend before further losses, appeared to send a sigh of relief through the sector on Wednesday.

Cryptocurrencies overall traded higher on Wednesday. The total cryptocurrency market capitalization rose to $325.27 billion, compared to $312.02 billion a day earlier.

Among bitcoin’s closest rivals, rose 4.8% to $293.86, advanced 2.1% to $0.39838, increased 3.4% at $119.853, while traded up 3.9% to $408.37.

Among news regarding the sector as a whole, the Cuban government said late Tuesday it was studying the as part of a series of measures to boost its economy amid a deepening crisis exacerbated by U.S. sanctions.

British regulator the Financial Conduct Authority proposed Wednesday the to retail consumers from early 2020 due to what it considers the prevalence of market abuses.

The FCA noted that prices of crypto-assets – which include currencies like bitcoin as well as tokens representing other tradeable assets – are very volatile and there is a lack of a clear investment need for products referencing them.

— Reuters contributed to this report.

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