Cryptocurrency Market Stalls at $380 Billion, is Bitcoin Ready to Climb Up?
The cryptocurrency market has been volatile during this week, as major cryptocurrencies including bitcoin, Ethereum, Ripple, and Bitcoin Cash have continued to move in between $340 billion and $380 billion.
Is Bitcoin Ready to Move?
Today, on March 11, the cryptocurrency market recorded a minor recovery after dipping below the $350 billion mark. Briefly, bitcoin fall into $8,320, and the price of Ethereum also dropped to $637, significantly below its all-time high established at $1,400.
The daily trading volume of bitcoin has remained relatively low for several days in a row, at the $5 billion area. The high quantity of Tether, a cryptocurrency that's backed to the US dollar at a 1:1 ratio, can be thought of as a representation of the market's volatility, given that many traders on the world's biggest cryptocurrency trading platforms utilize Tether to hedge the value of cryptocurrencies into the US dollar.
At the time of reporting, the daily trading volume of Tether remains at $2.3 billion, which is nearly four times higher than that of Litecoin and more than $800 million higher than that of Ethereum.
Throughout the past six decades, upon a dramatic surge in sell volumes, bitcoin has continued to recover from major corrections.
As an example, in December 2016, the price of bitcoin dipped below the $800 mark as sell volumes intensified. But, throughout early 2017, the price of bitcoin rallied to $4,000, eventually achieving $19,000 over the same calendar year.
For instance, in December 2016, the purchase price of bitcoin dipped below the $800 mark as sell volumes intensified. But, during early 2017, the purchase price of bitcoin rallied to $4,000, eventually achieving $19,000 over the same year.
It is also important to consider the significant factors that are causing the purchase price of bitcoin and other big cryptocurrencies to be extremely volatile. Some state it's the sell off of Mt. Gox bitcoins, worth over $1.5 billion, that is preventing the market to recuperate.
If Mt. Gox sell off has been causing the cryptocurrency market to fall, once it stops at the short term, the market will not be impacted by many millions of dollars worth of bitcoin being dumped into the public marketplace, on cryptocurrency exchanges.
As sell volumes decline and the demand for major cryptocurrencies rise again, and the growth of demand complies with the stopped sell from Mt. Gox bitcoins, the purchase price of bitcoin will probably be able to recover to January 2018 levels, given the current trend.
Ethereum and Alternative Cryptocurrencies
In the past 24 hours, while the price of Ether has dropped nearly 4 percent, bitcoin has dropped marginally by 2 percent.
Tokens like EOS and Tron, which recorded enormous profits on March 10, also have declined by around 4%, following the trend of Ethereum.
Though some investors like Vinny Lingham anticipate the purchase price of Ether to outperform bitcoin from the short-term, given that Ethereum has performed much worse than bitcoin within the past few weeks, a large part of investors still remain confident that newcomers will take part in bitcoin trading first, before considering other assets.