Correction Of The Crypto Market As A Change Of Seasons
The current correction in the cryptocurrency market is not something extraordinary or exceptional. Moreover, it is necessary to see the picture of the market as a whole in order to judge the future. According to experts, a hypothetical correction and the loss of even 80% of the value by bitcoin will not be a fatal blow to the crypto market, but for a long time, it can consolidate the latter as a niche market.
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The Elon Musk Effect Still Has An Outsized Influence On Crypto Markets
The fact that he was able to rock the crypto market so dramatically is indicative of crypto’s weakness. Your Bitcoin portfolio might end-up being your winning lottery ticket, and it might ultimately skyrocket in value and make all your dreams come true, but it’s still a very vulnerable investment.
But, even with high volatility and flaky price movements, cryptoand Bitcoin, in particular, seems to have an unshakeable base of old-school supporters: Clearly, some people are attracted to for philosophical reasons, Eaton-Cardone explained. They’re libertarian-minded and have a copy of Atlas Shrugged on their coffee table.
For them, it’s as much a moral investment as a financial one. Not unlike the people who’ve turned to crypto because of dissatisfaction with government rules, regulations and fiscal policy, they’re going to give crypto every benefit of the doubt, she said. Therefore, Elon Musk might have the power to rock the crypto market with a single Tweet, but ironically, it’s his ultra-affluent, tech-loving acolytes, admirers and contemporaries who’ve given crypto a significant built-in basement.
The I Newsletter Cut Through The Noise
It comes after many cryptocurrencies enjoyed record highs at moments through the year, with one Bitcoin token reaching a price of £50,546.71 recently before significant dips.
Tesla CEO Elon Musk announced on Twitter the company was making a u-turn on its policy to accept the crypto over environmental concerns in relation to Bitcoins mining process.
Its impact was far reaching with other cryptocurrencies Ethereum, Binance Coin, Dogecoin, XRP and Litecoin among the worst affected.
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What Are Financial And Cryptocurrency Markets
The financial market is a mechanism for the redistribution of assets, cash, liabilities between buyers and sellers. The value of each asset taken is determined at the auction using supply and demand. For example, assets are most often money and securities. Every day there is a movement of money between investors, traders, companies, and the state.
Operations with currency exchange, purchase of securities, taking out a loan are examples of typical varieties in the financial market.
At its core, the crypto market works just like any other financial market. That is, as in the case of stocks or forex, the main goal of the user is to predict which direction the price of the digital currency will go in the coming months, weeks, hours or even minutes. This will depend on the chosen trading strategy. Similar to forex, cryptocurrencies are traded in pairs.
This means that a trader is speculating on the value of a digital currency in relation to another asset. It can be either fiat currency or an alternative crypto asset.
Is Extreme Volatility In Altcoin Markets Over
In fact, both could happen this week, while the death drops that plagued crypto price last week may have screeched to a halt , the ride could start again at any moment.
Digital asset markets are famously volatile and whether this is a bounce or not remains to be seen, he said. Still, Furo believes that: fundamentals are growing every day in terms of network use, versatility and development power.
And while crypto market volatility can seem whimsical at times, Furo explained that there is some method to the madness of price movements: What is clear from price is that the market is strongly momentum-driven, with correlations going to 1 on the way up and the way down, he said. this usually is perpetuated by the news.
In other words, just as soon as crypto market sentiment reached new highs, it was over: Positive sentiment flowed from news cycles, pushing cryptos to all-time highs, taken away by media pushing uncertainty with Chinese mining laws and Bitcoin energy consumption, Furo said. My guess is that the market is likely going to follow bitcoin and in that regard, yes, altcoins are in danger of further drops.
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Crypto Experts Make Bitcoin Price Predictions For 2022
With the end of the year fast approaching, we reached out to various crypto experts to hear their thoughts about the year ahead.
We asked whether they think were heading towards another crypto winter and if so, when and asked for them to make a prediction for the price of bitcoin over the next 12 months. Finally, we asked if there were any altcoins that they had their eye on for 2022.
You can read the full story here:
Where is BTC heading next year? Is another crypto winter on its way or could certain altcoins hit new all-time highs?
Alt Season Aint Over Yet: Crypto Markets Recover After Shedding Billions
- Altcoin prices appear to be stabilizing after a rollercoaster week in crypto markets.
Wednesday, 26/05/2021 | 08:16 GMT-0
After a week of steep volatility, altcoin prices appear to be stabilizing.
Indeed, the seven-day charts of the largest altcoins by market cap are still seeing red. Chainlink is down roughly 12 percent, Uniswap is down by 8 percent Polygon is down 5 percent. Binance Coin and DogeCoin are down just over 10 percent. Bitcoin Cash is down 17 percent, while XRP and Polkadot are respectively down by 25 and 33 percent over seven days.
However, the 24-hour charts of each of these coins tell very different tales. It appears that altcoin investors have been ‘buying the dip’: LINK has risen more than 23 percent in 24 hours, while MATIC is up more than 27 percent. UNI is up by more than 11 percent BNB is up nearly 9 percent in 24 hours, while DOGEs price is up 1 percent. BCH is up 6 percent XRP is up 5 percent, while DOT was up by more than 10 percent.
Additionally, Ethereum , which fell below $1,800 on May 23rd for the first time since March 31st, is up nearly 10 percent in 24 hours and down just over 2 percent in 7 days. Cardano was performing even better, with a 24-hour rise of 13 percent against a 7-day gain of 1.57.
The total was up in the past 24 hours, showing an increase from $945 billion to $1.01 trillion.
What caused the altcoin market rollercoaster last week? And what is causing markets to stabilize now?
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Reasons For The Downtrend
In the spring of 2021, Elon Musks tweets about the centralization of bitcoin and the ban on supporting the cryptocurrency business in the PRC became one of the main reasons for the fall of the first cryptocurrency up to the level of $30,000.
Elon Musks Tweets
The prerequisites for the fall of the cryptocurrency market arise from Teslas refusal to accept payments in bitcoin and rumors about the possible sale of a coin from the companys assets.
Elon Musks actions disappointed investors, as the hopes for Bitcoins entry into the world of large multinational companies have not yet come true. The bearish sentiment of market participants was exacerbated by the news that support for cryptocurrency-related businesses was banned in China.
Mining Ban In China
The PRC has a huge mining capacity and a large share of the e-commerce market, which is targeted by cryptocurrencies. The market fears that following China, a ban could be introduced in other countries.
According to experts, the fall was due to the general disappointment of investors in the dynamics of cryptocurrencies, and Musks tweets and the PRCs bans fell into fertile soil.
However, by today, bitcoin corrected to $51,000.
Bitcoin Crypto Market Slightly Recover From Major Sell
Total value of cryptocurrency market rebounds moderately after losing over $520B in matter of hours
The price of Bitcoin and value of the crypto market recovered slightly on Monday, two days after a major sell-off amid worries related to the omicron variant of the coronavirus and risks posed by Chinese real estate developer Evergrande.
After closing Friday at $53,709, Bitcoin saw its price plummeting to as low as $42,000 early on Saturday to close the day at $49,272 for a 8.26% daily loss.
Its price recovered to $48,800 as of 11.23 a.m. EDT , according to official data.
The total value of the cryptocurrency market plummeted from $2.65 trillion on Friday to as low as $2.12 trillion on Saturday, losing over $520 billion in a matter of hours.
The crypto market’s total value later recovered, standing near $2.26 trillion at the time, according to data by digital asset price-tracking website CoinMarketCap.
The major sell-off came as the omicron variant has provoked fear that risky assets could see major losses as in March 2020, when COVID-19 hit.
Chinese firm Evergrande, which has about $300 billion in total liabilities, said late on Friday that it may not have enough funds to meet its financial obligations.
Investors are worried that the collapse of Evergrande could create a domino effect, similar to the US’ mortgage crisis in 2007, which turned into a global financial crisis the following year.
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Stablecoins Take The Lead
Stablecoins are digital tokens that are pegged to a fiat currency that act as hedging mechanisms against the potential decline of underlying cryptocurrency collateral pricesand they may just be the industry’s best hope going into 2021.
Stablecoins may see growth next year for two reasons: one, a result of the long-term instability of non-centralized tokens and two, the current leader in the stablecoin industry, tether, is positioned to be dethroned.
As one of the earliest stablecoins to reach the mainstream, Tether has suffered a number of highly publicized growing pains while the sub-industry developed. Other stablecoins have already entered the field, aiming to wrench away its dominance.
Why Is Crypto Going Down Will The Slide Continue
Bitcoin is the face of the cryptocurrency market. And the majority of price movement within the market is dependent on Bitcoins success or failure.
For example, most altcoins face volatility when Bitcoin begins to drop. Anything from negative press to government crackdowns can cause a chain reaction that leads to a crypto crash.
At the moment, Bitcoin is trading around $40,000 after hitting an all-time high of $64,829.14 in April. So why is crypto going down so quickly after most digital currencies were reaching new highs in recent months?
Recent government crackdowns and the resulting backlash have led to market uncertainty and volatility. And while most experts believe its only a matter of time before the crypto market recovers, many investors are trying to determine if nows the time to get in or get out.
So lets take a look at the bigger picture. Bitcoin finished June down 6%, and the volatility has continued into the fall. On the other side of the crypto spectrum, the meme token Dogecoin is down more than 70% over the past two months after hitting an all-time high of $0.740796.
According to a CryptoCompare, trading volume on Coinbase, Binance, Bitstamp and Kraken fell more than 40% in June. These are some of the largest and most popular cryptocurrency exchanges. And in total, the crypto market lost more than $1.3 trillion in a two-week span.
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Will Crypto Recover Bitcoin Bears And Bulls Collide
Investors and analysts alike are clashing over the crashing. Can Bitcoin recover from its losses? If Bitcoin is the figurehead of the entire industry, its future could forecast that of the entire world of digital currency.
Adam Button of Forex Live is bearish on Bitcoin, but not necessarily on crypto. Button has made clear his view that Bitcoin is not the currency of the future, and its time everyone stopped pretending that. He makes his case that in tech, being the first to do something doesnt give you a stranglehold on an industry. He believes that crypto will recover, and whoever has the best model will overtake Bitcoin in due time.
Traders of Crypto founder Antony Portno is another analyst bearish on Bitcoin. He says that its unclear how Bitcoin will recover, since Musks rejection of Bitcoin is just the first sign of crypto-influencers turning back on the currency. Kevin Brown of Scottish Friendly and says that investors must be prepared to lose all of their money because of the wild volatility.
This is not to say that everybody is turning their backs on crypto, however. There are many Bitcoin and crypto bulls, like Chris Harper of Birmingham Mail. Harper cites Aprils correction before soaring to an all-time high as evidence enough that Bitcoin can recover again. Not to mention, green cryptos are on the rise, and sentiment that crypto is the future of currency is still high.
Will The Market Continue To Grow As Expected
Another subject worth delving into, especially in light of the recent market crash, is whether or not the crypto industry will be able to expand and grow as it has over the past year or so. On the subject, Lu opined that the decentralized finance market has gained a considerable amount of traction recently, with this segments total value locked and the number of applications growing exponentially.
Furthermore, he also highlighted that with a growing number of blockchain interoperability solutions now making their way into this space, it seems as though the decentralized finance market will continue to grow and pique the interest of many new investors across the globe.
In addition to the DeFi sector, the crypto market has also given birth to the nonfungible token boom, which according to many experts is a space that seems primed to evolve and keep growing in the future, especially as more and more artists, musicians and content creators continue to adopt these novel digital offerings.
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Bitcoin Holds Steady Below $50000 In Volatile Weekend Trading
- Bitcoin prices bounced around on Sunday, continuing a period of selling that saw the cryptocurrency tumble more than 17% on Friday night and into Saturday.
- The cryptocurrency stood around $48,000 on Sunday, up from Saturday’s low near $43,000. On Friday morning, bitcoin traded around $57,000.
- The selling came as investors fled risky areas of the market amid fears over what the new omicron variant means for the economic recovery.
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The cryptocurrency traded at $48,776 around 7:45 p.m. ET Sunday on Wall Street, according to data from Coin Metrics.
Earlier in the day the cryptocurrency slid more than 2% as the cryptocurrency struggles to regain the $50,000 mark. On Saturday prices dropped to a low around $43,000, down from the $57,000 bitcoin traded at Friday morning.
Bitcoin’s sharp tumble follows Friday’s risk-off tone in the broader market. All three major averages finished Friday’s trading in the red and posted losses for the week amid fears over what the omicron Covid variant means for the ongoing economic recovery.
Investors ditched equities in favor of safer areas of the market, with the yield on the 10-year U.S. Treasury moving lower.
El Salvador President Warns It Could Be Game Over For Fiat
El Salvador president Nayib Bukele, arguably bitcoins biggest proponent in 2021, has warned of the death of fiat currency.
Earlier this year, Bukele became the first ever world leader to usher in laws to acknowledge bitcoin as a legal form of tender, allowing it to officially circulate in the countrys economy alongside the US dollar.
If the so-called Bitcoin Experiment is successful, Bukele said it would be game over for fiat.
He tweeted: El Salvador is the spark that ignites the real revolution.
There are rumblings in several other Central and South American countries that suggest El Salvador may not be the last country to officially adopt bitcoin.
Bitcoin, Ethereum prices surge
Bitcoin has surged above the $51,000 mark, growing by over 5 per cent in the last 24 hours and up by nearly 7 per cent compared to its value a week earlier.
Ethereum has also surged by over 3 per cent in the last day and is valued at more than $4,100.
Other leading cryptocurrencies including solana, cardano, and polkadot have also grown by over 4 per cent in the last day.
Meme coins dogecoin and its spinoff shiba inu have also grown by 5 to 10 per cent in the last 24 hours.
The overall crypto market has surged in value by about 4.5 per cent over the last 24 hours and is currently valued at $2.39 trillion.
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When Will Crypto Market Recover
As you know the whole crypto market crashed miserably in September. Now the question is When will it recover? What is the best time to purchase crypto? To answer these questions, lets start with an analysis of the current situation.
The price of Bitcoin is now sitting at 10,345 USD, which marks a 1.79% decline . Ethereum is sitting at $365.5 . Tether is sitting at $14.71 . Chainlink is sitting at $4.57 .
The crash of Bitcoin since the 1st of September is -18.6%. And it keeps going all the way down from $12,000 to $9,800. Currently, Bitcoin is only up 5.4% from the lowest point. We saw a little bit of a spike up to $10,500, which was a gain of 7.8%. But yesterday that climb up was hindered a little bit with a drop back down.