Blockchain technology companies and cryptocurrency investors breathed a little easier today, as bitcoin and other digital currency rebounded after a huge price crash on Friday.
Bitcoin’s price hit more than $17,500 on some exchanges this morning, rebounding from lows that bottomed in the $11,000 per single coin range. While still not near its all-time highs of more than $20,000 per single coin, it is better than Friday’s results, when bitcoin lost about 30 percent of it value, dragging down the entire cryptocurrency market.
The market crash on Friday panicked some investors, causing Coinbase, the largest U.S. digital currency exchange, to shut down. The service claimed it was overwhelmed by the volume of investors looking to buy or sell out of positions.
Many technology and entertainment companies have funded themselves through initial coin offerings (ICO), accepting bitcoin and ethereum donations for proprietary tokens. The worldwide ICO market is estimated to generate more than $3 billion in funding this year. Any major drop in the value of those holdings could delay or destroy plans for new projects.