After several weeks of disappointment, cryptocurrencies may be on track to recover. Bitcoin (BTC) and several other leading currencies have experienced a modest price surge over the past several days, boosting the market overall and helping to quell fears that the cryptocurrency space is a speculative bubble waiting to burst. As usual, BTC led the way; the world's most popular digital currency by market cap tends to inspire simmilar price fluctuations in other digital currencies.

BTC Rises Above $8,000

As of this writing, the price of one bitcoin has risen above $8,000. This is thanks in large part to a jump of 11% on Thursday, when the value of BTC climbed past the $7,700 mark. While it is difficult to pinpoint motivations behind any cryptocurrency price fluctuation, CoinDesk suggests that this particular rally may be due to the "unwinding of the short trades" which has taken place in recent days.

EOS and Others Climbed As Well

Besides BTC, several other major digital currencies saw sharp increases in value this week as well. Ethereum and Ripple also gained more than 10% over the week, respectively. Some of the most notable movement over the past week, however, was achieved by a coin which is relatively unknown compared to these major players. EOS climbed by more than 30% toward the end of the week, rising above $9 per token. This places EOS as the number five digital currency by market cap, according to CoinMarketCap.com.

Market Maturity?

With the cryptocurrency market seemingly becoming increasingly stable, analysts have speculated as to what may be causing the reduced fluctuations. George Soros, the billionaire investor, has recently announced his intention to begin trading cryptocurrencies; similar moves by other leading investors could inspire the broader cryptocurrency space to become increasingly confident.

At the same time, though, the increasing environmental costs associated with digital currencies are a major concern for many analysts. Mining for digital currencies takes up a huge amount of energy. While some developers and startups are aiming to buy energy for their development efforts at wholesale prices, the continued growth of the space has many concerned about the long-term sustainability of the cryptocurrency mining model as it currently stands.

Investing in cryptocurrencies and Initial Coin Offerings ("ICOs") is highly risky and speculative, and this article is not a recommendation by Investopedia or the writer to invest in cryptocurrencies or ICOs. Since each individual's situation is unique, a qualified professional should always be consulted before making any financial decisions. Investopedia makes no representations or warranties as to the accuracy or timeliness of the information contained herein. As of the date this article was written, the author owns no cryptocurrencies.

Want to learn how to invest?

Get a free 10 week email series that will teach you how to start investing.

Delivered twice a week, straight to your inbox.