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In the past 24 hours, the cryptocurrency market has remained relatively stable in the region of $ 450 billion. $ 30 billion increase in the stock market valuation on February 27. Bitcoin remained above $ 10,500, despite a large volume of sales that lowered the value of cryptocurrency from $ 11,000 to $ 10,300
Bitcoin and Ethereum
Earlier today, February 28, a large volume of sales in most major cryptocurrency exchanges, including Bitfinex, caused the price of bitcoin to drop by more than $ 700. in three hours. Since then, bitcoin has rebounded to $ 10,500, but volumes remain low on many exchanges.
Most importantly, the daily trading volume of Tether, a crypto-currency sustained at a ratio of 1: 1 against the US dollar, reached $ 2.5 billion, indicating that Cryptocurrency traders use Tether to cover cryptocurrencies. It is unlikely that traders will sell Tether and allocate their funds to other cryptocurrency, because the stock market valuation has dropped more than $ 18 billion since February 27th.
According to the price trend of bitcoin, Ethereum and other important cryptocurrencies over the last week, it is unlikely that the market enters a market bullish in the short term. It is more likely that the market will remain very volatile in the region by $ 450 billion, both up and down, before recovering sharply from its previous levels in January.
At the end of 2017, when the price of cryptocurrencies reached historic highs, extremely optimistic media coverage prompted investors to invest heavily in the cryptocurrency market, outside the cryptocurrency market. As the price of major cryptocurrencies fell, many casual and newcomer investors suffered significant losses.
Analysts expected the market to experience a bear market in the long term, similar to that of 2014, due to the sharp fall in the value of bitcoin and many other cryptocurrencies on the market, including tokens.
However, the market has rebounded fairly quickly, and at this point, it is possible that the market could begin a process of rapid recovery in March and April, potentially in the region of $ 600 billion. Throughout the recovery, as obviously the daily transaction volumes of bitcoin and Ethereum clearly show, significant lows and minor corrections will occur frequently, and the market will continue to be very volatile.
Ethereum for example, which peaked at $ 979 this month, remains below $ 860, and has been outperformed by bitcoin this month. Although it has dropped only about 40% from its record high, it is struggling to maintain a strong momentum for a rise in value in the short term.
The controversial statements and misrepresentations of influential figures like Bill Gates also affect the public's view of cryptocurrencies.
This week, Gates said that cryptocurrencies are anonymous, only used for drugs, and are related to deaths, three factually incorrect allegations. Bitcoin is transparent and non-anonymous in nature and 95% of drug purchases are made by fiat currency such as the US dollar.
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