By Yasin Ebrahim
Investing.com – Bitcoin rebounded Monday following last week's rout to a seven-week low as investors bought the dip and signs of mining activity steadied.
BTC/USD rose 8.4% to $54,151 after falling below $50,000 last week.
The wave of investors who took advantage of the dip, helped steady the crypto market, pushing the total market cap back above $2 trillion.
The selloff last week is believed to be have been caused by several factors including bitcoin miners scaling back operations in Xinjiang, China, following a power outage. Miners play an important role in maintaining the plumbing of the network, or blockchain, that powers bitcoin.
"Essentially, you can think of cryptocurrency miners as the engine that keeps the bitcoin network running — responsible for the validation of all transactions that take place on the network," according to Canaan CEO Nangeng Zhang.
The mean hashrate of the Bitcoin network fell to 131.796 exahashes per second on Friday, its lowest level since December 2020, but has rebounded to about 150 exhhashes per second, according to data from Blockchain.com.
The rebound in cryptocurrencies on Monday also signaled an increasing appetite for alternative cryptos, an indication that bitcoin, while the dominate crypto, is not the only game in town for investors.
Bitcoin’s dominance rate - the ratio of BTC market cap over total market cap – looks increasing vulnerable to a break below 50% for the first time since August 2018 after falling just below that level last week as alt coin gain momentum.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.