Can't Hold Down, DCG Intervention Doubles Ethereum Classic Price

JAKARTA - Ethereum Classic (ETC) hit its highest level in three weeks on Wednesday, June 30. This was supported by an investment of US$ 50 million (IDR 725.6 billion) from the Digital Currency Group (DCG) backed by Barry Silbert. This is also due to the overall cryptocurrency market recovery led by Bitcoin (BTC).

The 17th largest cryptocurrency by market value, traded as high as US$ 63.19 (IDR 917,092), up nearly 98% from its June 22 low of US$ 31.91 (IDR 463,117). Meanwhile, the market value of all outstanding Ethereum Classic tokens has already exceeded US$ 7.53 billion (approximately IDR 10,928 trillion).

Digital Currency Group (DCG) revealed on June 21 that it has authorized the purchase of up to a total of 50 million shares of Grayscale Ethereum Classic Trust (OTCQX: ETCG). Grayscale is a New York-based investment firm that provides accredited investors access to digital currency products in the form of traditional securities.

On the day of the announcement, Ethereum Classic was down 22.56%, in line with other cryptocurrency markets. This is in response to China's growing crackdown on the regional crypto sector, including a complete ban on crypto mining activities.

But despite the massive sell-off, the Bitcoin and altcoin markets bounced back simultaneously. Traders particularly recognize buying opportunities in the Bitcoin market as BTC/USD slips below $ 30,000. This is a psychological support level that has recently prevented the pair's downward bias from developing deeper.

Meanwhile, altcoins are only following Bitcoin's rebound due to their high correlation with the top digital assets.

According to data provided by Crypto Watch, the efficiency of the 30-day correlation between Bitcoin and Ethereum's Ether (ETH) was 0.83 on Wednesday. The number 1 represents a perfect positive correlation between the two assets.