As per Coinmarketcap.com, the global crypto market cap surged by 2.29 percent over the previous day and hit levels of $1.9 trillion. Volume in the crypto space also saw a surge by close to 6 percent over the previous day and is at $118.02 billion.
At the time of writing this copy, cryptocurrency prices were trading in the green with Bitcoin up over 2 percent at $42,465, while other prominent digital tokens including Ethereum , Ripple, Cardano quoted with gains of between 3-8 percent. The meme-currency dogecoin also was up by as much as 3 percent at US $0.208.
There was a sell off seen in the cryprocurrency market after China's central bank declared all bitcoin and other cryptocurrencies related transactions as illegal. Typically tokens that have a huge share of Chinese users saw a massive sell off. Huobi digital currency was down as much as 23% over the previous day, likewise FTX token tumbled by 12% over the same period.
On a weekly basis, the oldest and largest cryptocurrency, bitcoin is down by over 12 percent and is seen stabilizing above the support level of $40,000. Analysts are of the view that volatility in cryptocurrencies shall prevail and remain at higher levels owing to the ongoing regulatory crackdown.
"This is not the first time such an announcement has come out of China, as it had enacted similar punitive measures in 2013 and then again in 2017, following the ICO (initial coin offering) craze," FundStrat, a global advisory firm, wrote in a report on Friday.