Crypto Market Update: Bitcoin Posts Massive Recovery, XRP Faces Grayscale Setback

Cryptocurrency markets have staged a smart recovery with the total global market capitalization jumping 10.17% in 24 hours leading to press time, as per CoinMarketCap data.

What Happened: Bitcoin (BTC) was up 10.01% at press time at $37,330.57 while Ethereum (ETH) rallied 5.48% higher at $1,105.77.

Grayscale Bitcoin Trust GBTC closed 3.67% higher at $40.35 on Wednesday. On the same day, Grayscale Ethereum Trust ETHE closed 1.75% higher at $13.40.

Grayscale is making moves to dissolve its XRP Trust after having announced the liquidation of XRP positions from its Grayscale Digital Large Cap Fund GDLC. 

The decision comes in the wake of the United States Securities and Exchange Commission filing a lawsuit against XRP linked company Ripple Labs, as per a statement. XRP traded 0.99% higher at $0.29 at press time.

Most other major altcoins followed the lead of the apex cryptocurrency with Litecoin (LTC) higher by 8.27% at $145.98 and Bitcoin Cash (BCH) up by 3.5% at $491.10.

Chainlink (LINK) and Monero (XMR) traded higher by 12.31% and 3.66% at $15.79 and $164.91 respectively at press time.

A cryptocurrency that bucked the trend was Solana (SOL), which traded 4.49% lower at $3.38. 

Why It Matters: Despite the jump in prices, analysts are not taking a bright view of the market.

Misha Alefirenko, founder of VelvetFormula, a crypto market maker, told CoinDesk that he has no “clear view at the moment.”

See also: Bitcoin Hype-To-Activity Ratio: What That Tells Us About The Latest Rally

“Looks like big guys stepped away to wait and see. The market has to find its own balance,” said Alefirenko.

Constantin Kogan, a partner at Wave Financial, said there was potential for downwards movement in BTC.

See Also: Key Metric Indicates Bitcoin Rally Might Be Over For The Time-Being: What You Need To Know

“We may go even lower to $23,000,” said Kogan — adding,  “There is a zone from which they [traders] will start to actively buy back.”