The market has rebounded in the last two hours, earning $ 10 billion in the process. The return is led by Ethereum and Bitcoin Cash, which both gained 13%. Ethereum was trading at $ 136 at the time of printing, bouncing from $ 117 recorded just three hours earlier. Its trading volume also increased significantly by 24% to $ 3.1 billion.
Bitcoin also posted gains, increasing by 6% to trade at $ 3.953. Despite the gain, the currency has not yet recovered its Christmas fall. However, the currency looks set to return to the crucial $ 4000 level, a level that has proved to be quite easy to breach for bears. Awakening comes when a WSJ report reveals that the currency has found a trade correlation with gold. According to the report, this is a clear sign that institutional investors have a large stake in the market.
Only a week ago, Ethereum was struggling to stay above $ 100. However, just before Christmas, the currency reached $ 157, an incredible 50% increase. However, since then, Ethereum has dropped significantly to $ 116 in tandem with the rest of the market.
With a gain of $ 17 in just three hours, it seems that Ethereum is determined to counterattack and close the year above. The currency seems to benefit from an increase in the volume of trade that currently amounts to $ 3.1 billion. The volume earned $ 600 million in just a few hours.
Even Bitcoin Cash has reacted fiercely, cementing its place as the fourth most precious crypt. BCH had problems yesterday, with a volume drop of 50 percent in 24 hours. He seems to have shrugged him off and now looks set to return to the $ 200 level for the first time since Christmas Eve.
The rest of the market also posted gains, with EOS, Litecoin and IOTA having earned double digits. Cardano, Monero and Binance Coin have all earned 10%, with TRON consolidating its position in the top 10 with a gain of 8%.
Bitcoin and gold in very high correlation
Bitcoin has not been left behind, gaining 6 percent in the last 24 hours to reach a touching distance of the $ 4000 level. The currency was trading at $ 4000 on Bitfinex and HitBTC, still two of the most expensive Bitcoin markets. On Coinbase, the currency was trading at $ 3,880.
Meanwhile, the Wall Street Journal reported today that the correlation of Bitcoin with gold and other traditional goods is on a yearly high. The report cites data from Excalibur Pro, a New Jersey-based company that studies the correlation between assets, helping investors understand market trends.
Over the past five days, Bitcoin has had a correlation of 0.84 with gold. A score of 1 indicates a complete correlation, while -1 indicates an inverse relationship. So, why does this matter?
The correlation suggests that Bitcoin and gold may have shared investors. According to the WSJ, the inflow of institutional money over the past two years has contributed significantly to the correlation. One example is Grayscale's over-the-counter ETF, which in its first year had over $ 3.5 billion in assets under management.