Cryptocurrency markets engineered an impressive rally through the midweek, with bitcoin cash and XRP posting massive gains on positive speculation concerning hard forks and business adoption, respectively. Over the past 48 hours, markets have lost a combined $8 billion in value, as profit-taking and overbought resistance tempered growth.
In traditional markets, Wall Street’s bulls re-emerged after a disastrous October selloff, with the S&P 500 gaining 3.5% so far this month. A divided Congress has fueled speculation that the Republicans won’t be able to implement sweeping reforms that could impact big business.
Crypto Rally Softens
The crypto markets were a sea of red Friday, extending a 48-hour retreat that knocked the majors from overbought territory. After gaining as much as 53% week-on-week, bitcoin cash had pared its seven-day advance to 27%, according to CoinMarketCap. BCH was last seen trading at $566, down sharply from a peak near $640 earlier in the week.
XRP also witnessed broad declines in the latter half of the week, paring its seven-day gain all the way down to 9%. The so-called banker’s cryptocurrency is back below $0.5000 at the time of writing.
Bitcoin was late to the BCH-inspired rally but still managed 18-day highs on Wednesday. The largest cryptocurrency by market cap has given back most of those gains and currently resides below $6,400.
The cryptocurrency market cap is currently valued at $212.2 billion, down from highs near $221 billion on Wednesday but well above week-ago levels. Daily trade volumes are back below $14 billion after hitting highs of $17 billion on Wednesday.
Stock-Market Bulls Make Their Return
U.S. stocks made big gains this week, adding to an already impressive November start that has contrasted sharply with the previous month.