After getting hosed earlier in the week, all major cryptocurrencies are solidly in the green this morning. Despite the rally, Bitcoin is still down around 20% over the last 7 days, as the chart at the top illustrates.
The London Block Exchange, a UK bitcoin startup, writes in its daily market report on Thursday:
“As we approach the weekend – traditionally a period with less trading volume and therefore more prone to wild movements, with a tendency to dip – we continue to recommend closely watching bitcoin’s price to gauge the direction of the crypto markets. “While today’s early hours have been positive, with bitcoin rising 8% and leaving the past day’s bear channel, it’s impossible to predict the short-term direction.”
The rally in the market comes despite more skepticism from the world of traditional finance. World Bank Group President Jim Yong Kim compared cryptocurrencies to Ponzi schemes at an event in Washington on Wednesday night.
Bloomberg reports that Kim said:
“In terms of using Bitcoin or some of the cryptocurrencies, we are also looking at it, but I’m told the vast majority of cryptocurrencies are basically Ponzi schemes.”