As major cryptocurrencies such as Bitcoin and Ethereum rose 1 to 3 percent, the cryptocurrency market capitalization increased from $290 billion to $296 billion. However, the market continues to show bearish trends.
Over the past few months, short-term and daily charts have been almost identical to the Bitcoin price movement in 2014. Since then, market conditions have changed dramatically, and significantly larger amounts of capital are now present in the cryptocurrency market. However, just like four years ago, the burst of the bubble is associated with a kind of fixation that has taken hold of individual investors and individual traders, given that institutional investors have not yet made significant investments in the market.
If the correction in the cryptocurrency market continues at the same pace, then the price of bitcoin may fall below $6,000, and in the worst case, up to $5,000.
The volatility of the cryptocurrency market causes cryptocurrency prices to move synchronously with both depreciation and appreciation. The price of BTC and Ether has the greatest influence on other cryptocurrencies. When the price of these cryptocurrencies falls, so do the prices of others.
Billionaire investor Mike Novogratz previously predicted that the cryptocurrency market would reach a market value of $20 trillion. In the long term, this is possible, and the cryptocurrency market is likely to reach this point thanks to institutional investors and reliable depositories.
“One day one of the market leaders will say that Goldman Sachs is the custodian and Bloomberg has an index through which you can track performance, and FOMO will take hold of institutional investors the same way it once took hold of individual investors,” Novogratz said. And we do not exclude such a scenario.
Bitcoin and other cryptocurrencies will continue to experience serious adjustments, since the market is still in its development stage and has relatively high volatility compared to other emerging markets. Still, one of the cryptocurrencies was able to withstand difficult market conditions - the price of Ethereum Classic, according to Coinbase, increased by 21 percent. And the 0x cryptocurrencies, Nano, Ethos and Verge, lost another 5 percent over the past week
( Editor's note.. We personally consider the option that large investors do not enter the market “on highs,” so what is now happening with the price of cryptocurrency against the backdrop of news of significant changes in global regulatory policy looks more like a well-planned preparation for the entry of the main characters on the stage. Whether it will be a comedy or a drama, time will tell)
According to ccn
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