Major cryptocurrencies like Bitcoin and Ethereum rebounded on Thursday following a period of high volatility earlier this week.

Bitcoin had fallen below $51,000 on Wednesday but regained ground to trade above that threshold again. Meanwhile, Ethereum recovered after dipping below $2,900 to hit session highs.

According to analytics platforms, over $200 million worth of cryptocurrency futures contracts were liquidated amidst the market turbulence. Data shows the majority came from long positions being closed out at a loss.

Some experts believe the volatility was triggered in part by anticipation surrounding Nvidia's earnings. The chipmaker beat expectations, sparking renewed interest in artificial intelligence and machine learning tokens.

While the broader cryptocurrency market cap suffered declines, the total value locked in decentralized finance protocols remained resilient. This suggests confidence in the sector persists despite choppy trading conditions.

Technical analysts say key support levels held for flagship cryptocurrencies during the sell-off. The moves are viewed as a healthy correction rather than the start of a bearish trend reversal.

Looking ahead, traders will watch to see if buying interest continues pushing the market back towards recent highs. However, some caution that Bitcoin's dominance rate remains elevated, which could limit gains in alternative cryptocurrencies.

Overall, the rapid recovery suggests cryptocurrency markets are maturing in their ability to weather volatility. As adoption increases, the asset class may become less prone to whipsaws stemming from isolated events or announcements.