Bitcoin, XRP, and other cryptocurrencies showed signs of recovery early Thursday following a sharp selloff that rattled the digital asset market.
Bitcoin (BTC) extended its losing streak to four days on Wednesday, briefly plunging to $82,200 after an earlier attempt at a rebound failed to hold. By Thursday morning, Bitcoin climbed 2.3% to $86,164, according to CoinDesk, though the cryptocurrency remains down 17% from its recent high of $99,000 last Friday.
XRP also faced significant losses, dropping 17% from $2.71 on Friday to $2.24. However, the popular altcoin edged up 1.5% Thursday, hinting that selling pressure could be easing.
The recent selloff was triggered by a $1.5 billion hack on Dubai-based crypto exchange Bybit, which shook investor confidence. Broader market uncertainty, fueled by a tech stock selloff in the U.S., further weighed on sentiment.
Cryptocurrencies had surged in the wake of Donald Trump’s Nov. 5 election victory, as traders bet on a more crypto-friendly administration. However, most of those gains have evaporated, with Bitcoin now trading at levels last seen on Nov. 11.
“The rapid selloff leaves a steep climb ahead, despite a modest recovery,” said Susannah Streeter, an analyst at Hargreaves Lansdown. “Without clear signals of support from Trump, market nervousness is likely to persist.”
While a statement from Trump could bolster sentiment, the market is still searching for a catalyst to spark a broader recovery.
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