Bitcoin surpassed $20,000 on Sunday afternoon, rising 16.9% from its Saturday lows to $20,580.
The rally comes just one day after bitcoin, the world's most valuable cryptocurrency, fell below $20,000 for the first time since November 2020. Bitcoin was trading at around $20,383 per coin at the time of publication.
Even as the market continues to digest the fallout surrounding crypto lending giant Celsius and crypto investment firm Three Arrows Capital, Bitcoin's price surge reflects traders' renewed appetite for risk.
In a Telegram message to CoinDesk, Jordi Alexander, CIO of Selini Capital, said, "Willing buyers have been in cash waiting to buy cheap coins. TThey have to determine if they will get to buy another 20% lower, or if this is their chance. If they wait too long, they will have to chase higher."
"The key question is whether the forced selling we have seen is wrapping up, or if there are still distressed sellers," Alexander added.
Bitcoin's price fell below $20,000 early Saturday, dipping as low as $17,601 later in the trading day. Bitcoin also fell below the $19,783 all-time high it reached in December 2017, a level many crypto traders thought it would never fall below.
After falling as low as $880 on Saturday, Ether, the second largest cryptocurrency by market capitalization, saw an even bigger rebound. At the time of publication, ETH was trading at $1,133, up 20% in the last 24 hours and up 29% from its Saturday low.
Bitcoin is still down 56 percent year to date, while Ether has lost 69 percent of its value.
By fLEXI tEAM