Investing.com - Ethereum and other major cryptocurrency prices recovered on Wednesday after plunging in the previous trading session on reports that ICO investors are cashing out .
Bitcoin was up 5.4% to $6,324.7 at 12:20AM ET (04:20 GMT) on the Bitifinex exchange.
Ethereum traded 6.2% higher to $284.9 on the Bitifinex exchange.
Ripple gained 7.6% to $0.28539 in the last 24 hours on the Poloniex exchange, while Litecoin jumped 6.9% to $55.946.
Ethereum plunged 20% on Tuesday following a report that investors who bought the digital coins to participate in initial coin offerings (ICO) are now cashing out to cover expenses amid concerns that cryptocurrency bear market would continue.
“Most cryptocurrencies have been overvalued for a very long time,” said Samson Mow, chief strategy officer at blockchain developer Blockstream Corp. “It’s hard to pin this move on any particular factor, but it feels like the opposite of last year when money piled in as people felt FOMO. Now it’s piling out as they sense panic.”
The crypto industry rallied in July on hops that a Bitcoin-backed ETF fund would be announced during the month, but the U.S. Securities and Exchanges (SEC) has delayed the decision on whether to allow the fund from VanEck Associates Corp and Solid Partners Inc to list by the end of September.
In other news, Coinbase, one the world’s biggest cryptocurrency exchanges, has signed up around 50,000 new customers a day last year, CEO Brian Armstrong confirmed.
“This technology is going through a series of bubbles and corrections, and each time it does that, it’s at a new plateau,” Armstrong said at the Bloomberg Players Technology Summit in San Francisco on Tuesday.
“People’s expectations are all over the map, but real-world adoption has been going up,” he added.