The Problem With The 2021 Bitcoin Bubble
Over the past 24 hours, almost all cryptocurrencies have significantly increased in price, while bitcoin has grown by 9%, breaking the $ 3,500 threshold. Although this does not mean the market is recovering, such dynamics confirms the interest of investors in it..
In less than a day, the cryptocurrency market capitalization increased by $ 10 billion and reached $ 113.8 billion. Most of the coins grew by 10-20%. Bitcoin (BTC) has risen in price by 8%, and at the time of writing its rate is $ 3537. So far, it has successfully resisted a significant pullback. Ripple (XRP) rose 15.9% and is trading at $ 0.334, continuing to confidently hold the second position in the capitalization rating and expanding its lead over its pursuers. Ethereum (ETH) is still trying unsuccessfully to regain its former positions, but it was able to add more than 9%, and its current value is $ 94.
Weakened by a hard fork and subsequent hash rate war, bitcoin cash is still underperforming ether, and is trading at $ 90, although it added 10% per day. Of the top 30, EOS showed the largest increase of 26%, the price of which returned to level $ 2.46. Sillar (XLM), Litecoin (LTC) and Bitcoin CB added 14%, 9.5% and 4% respectively.
Analysts associate such changes with the current unstable situation in the stock markets, which encourages investors to leave classic assets in search of new highly liquid instruments. At the same time, the crypto market with clear oversold indicators is ready for a reversal and is attractive to bulls..
According to a study by Diar, institutional investors have increasingly come to the over-the-counter physical bitcoin markets lately, as traders themselves confirm. In addition to the affordable cost of a virtual asset, they have the ability to work with it without interruption. Although in advance impossible for sure determine how strong the momentum will be, but so far the increased volatility in traditional markets plays into the hands of cryptocurrency.
Facebook could become a strong player in the crypto industry, as according to Cheddar, the company is secretly developing its own payment product on the blockchain and is increasing its staff of specialists working in this direction..
text: Ivan Malichenko, photo: img.ihned, Shutterstock