Cryptocurrency Market Stable Bitcoin Price, at $ 450 Billion Remains Above $10,500
Within the last 24 hours, the cryptocurrency market has remained relatively steady in the $450 billion region, after recording a $30 billion increase in market valuation on February 27. Bitcoin has remained above the $10,500 mark, despite a major sell volume that directed the cryptocurrency to decline from $11,000 to $10,300.
Earlier today, on February 28, a large sell volume across most major cryptocurrency exchanges including Bitfinex directed the amount of bitcoin to drop by more than $700 within a span of three hours. Since then, bitcoin has rebounded to $10,500, but volumes remain low on many exchanges.
What's more, the daily trading volume of Tether, a cryptocurrency that's endorsed at 1:1 ratio with the US dollar, has spiked to $2.5 billion, suggesting that cryptocurrency traders are using Tether to hedge the value of major cryptocurrencies. It's not likely that traders are selling Tether and allocating their funds to other cryptocurrencies, because the market valuation of the market has fallen by over $18 billion since February 27.
Based on the purchase price trend of bitcoin, Ethereum and other major cryptocurrencies throughout the past week, it's unlikely that the market will enter a strong bull market in the short-term. It is more probable that the market will remain highly volatile in the $450 billion region both in the upside and downside, until it contributes a powerful rally to its previous levels in January.
In late 2017, once the cost of cryptocurrencies achieved all-time highs, extremely optimistic media policy coaxed investors outside of the cryptocurrency market, especially in the finance industry, to invest heavily in the cryptocurrency market. As the price of major cryptocurrencies plunged, beginners and many investors suffered losses.
As such, analysts expected the market to experience a long-term bear market, like that of 2014, because of the abrupt fall in the value of bitcoin and several other cryptocurrencies in the market, including tokens.
However, the market has bounced back reasonably fast, and at this juncture, it's possible that the market could start a speedy recovery procedure throughout March and April, possibly back to the $600 billion region. During the recovery, as apparently portrayed in the daily trade volumes of bitcoin and Ethereum, large dips and minor corrections will occur frequently, and the market will continue to be very volatile.
Ethereum for example, which peaked at $979 this month, stays below $860 and has been outperformed by bitcoin this month. Although it has only fallen by around 40 percent from its all-time large, it's struggling to sustain strong momentum for a short-term spike in value.
The contentious claims and false statements of influential figures like Bill Gates are also impacting the public's viewpoint on cryptocurrencies.
This week, Gates said that cryptocurrencies are anonymous, only used for drugs, and are linked to deaths, three claims that are factually incorrect. Bitcoin is transparent and not anonymous by nature and 95 percent of drug purchases are made by fiat money like the US dollar.