It didn’t take long for Bitcoin to come back from yesterday’s sharp drop. Bitcoin (BTC) is up 3.77% as of this writing, and as it rises, it’s taking Wrapped Bitcoin with it, of course.

Wrapped Bitcoin improved by 4% over the last 24 hours, moving up to $61,559.49 (WBTC/USD). Its trade volume is down a bit, dropping 10.17% over that 24 hour, but it’s still a healthy crypto at this point.

Why Is the Market Back Up?

For many investors, yesterday’s crypto market plummet was a shock and completely unexpected. For many analysts, it didn’t come as much of a surprise and neither does today’s bounce back. The market fell due to the prices simply moving too high and too quickly for no discernible reason. There was no economic or regulatory reason for the prices to keep going as high as they did (with Bitcoin passing its all-time high), which means that a drop was almost inevitable. The market didn’t need an outside reason to plummet like that, with cryptos falling 5-10% almost across the board.

The crypto market is really healthier than it’s ever been, which doesn’t mean it is stable. Investors should expect major ups and downs like these to continue for the foreseeable future, which is why there is plenty of talk of regulatory oversight being instituted by governments throughout the industry.

Where Is Wrapped Bitcoin Headed?

As Bitcoin moves, so too does Wrapped Bitcoin, as the two are tied together by design. Wrapped Bitcoin shares a one-to-one relationship with regular Bitcoin, serving as a stablecoin. The two don’t always move in unison, as there tends to be a little lag from Wrapped Bitcoin as it follows on Bitcoin’s coattails.

That means that Wrapped Bitcoin is headed wherever Bitcoin is going. What we’re seeing from regular Bitcoin is that there is a little leveling out, as we predicted. The sharp drop from yesterday slowed down pretty quickly to be followed by something of a bounce back. This is not a complete recovery back to the earlier highs we saw on Monday for Bitcoin and the cryptocurrency industry at large, but it is definitely a good sign.

What it means is that yesterday’s drop was not the beginning of a bearish run. Bitcoin’s price doesn’t look like it’s about to bottom out or move anywhere close to the $50,000 level. What we will likely see over the next few days at least, and perhaps the next few weeks, is that investors will be a little slow to put their confidence and money back into Bitcoin. They may be worried that the price will drop drastically again and might not recover as quickly.