Market Remains Volatile Sustains Momentum With 4% Gains
A similar trend occurred today, because most important cryptocurrencies including bitcoin fought to record gains.
On February 26, just Litecoin and Ethereum amongst the 10 most precious cryptocurrencies in the global market managed to record daily profits. Ethereum's native cryptocurrency Ether demonstrated a slight increase in value of 1 percent from $841 to $852, after dipping below $820 on February 25. Ether remains as the only cryptocurrency besides Litecoin to show some upward momentum, but its trading volume is still relatively low.
Over the last few weeks, Ether has tended to follow the price trend of bitcoin during the recovery period from its yearly lows. However, in certain periods, Ether moved from other and bitcoin cryptocurrencies in a divergent path. Last week, when bitcoin spiked in value to $12,000, Ether and ERC 20 tokens or ICO tokens performed badly. This week, Ether has performed better than bitcoin, moving in another direction to the most dominant cryptocurrency in the marketplace.
This week, bitcoin has struggled to remain above the10,000 mark, which many analysts have described as the psychological threshold for traders. It is difficult to assess the short-term trend of bitcoin during this period where bitcoin, the most liquid and dominant cryptocurrency in the current market, is experiencing huge upswings and declines on a daily basis.
Merely one week ago, the purchase price of bitcoin doubled from its annual low at $6,100, breaching the $12,000 mark. In some areas like South Korea, the purchase price of bitcoin surpassed the13,000 mark. As of now, the purchase price of bitcoin remains below $9,600, demonstrating little signs of recovery back to the $12,000 level from the short-term, because of its low volumes.
In early February, as CCN reported, Pantera Capital's Dan Morehead stated that the price of bitcoin will probably begin rising by the 72nd day since its major correction in January, given that most short-term bubbles typically tend to burst and momentum rebuilds in less than 3 months.
«So it feels like another few weeks and everything is going to be kind of normal and it could begin grinding back up,» said Morehead.
Tether, a cryptocurrency that is backed by the US dollar at a 1:1 ratio, is an important indicator of the short-term performance of the cryptocurrency market. Many investors on major cryptocurrency exchanges like Binance and Bitfinex use Tether to hedge the value of cryptocurrencies during a volatile period, particularly when the market begins to fall.
As of February 26, the daily trading volume of Tether is $1.975 billion, which makes it the second most liquid cryptocurrency behind bitcoin. The large daily trading volume of Tether suggests that many traders are uncertain about the short-term tendency of major cryptocurrencies and are hedging the value of cryptocurrencies in the marketplace to the US dollar.