There is hope for the cryptocurrency market as the price of bitcoin rose by 10% in 24 hours, affecting other altcoins as well. The market capitalization of the entire cryptocurrency market has risen by over $14 billion in 24 hours according to coinmarketcap.com.
Crypto market plunge
The last few weeks have not been the easiest for crypto investors. Since the COVID-19 pandemic, there has been a massive sell-off of digital assets which led to major losses in the crypto scene. The crypto market losses were happening subsequently to the traditional market losses. March 12 was the worst for the crypto market as it lost more than $93.5 billion in 24 hours. Bitcoin was the worst hit, losing more than 50%.
The severe losses and volatility made many to question the position of bitcoin as a safe-haven asset. Bitcoin was likened to be a risk asset due to its behavior. The losses in the considered safe-haven assets such as gold and silver have left investors in a paradox.
A changing trend
The trend has, however, suddenly changed amidst the economic recession. Currently, bitcoin is trading at $6,569.17, and there is still hope for the price going up. Other altcoins were also not left behind. Ether has grown by more than 7% and XRP more than 5%.
The trend changed when the US Federal Reserve announced its asset purchase program to support markets on Tuesday. This gave investors increased confidence and as a result, it led to a bullish price situation with bitcoin. According to Vijay Ayyar, who is the head of marketing at Luno, the confidence led to a shift in the crypto trends. Since Bitcoin is the anchor cryptocurrency, its rise in value automatically spills over to altcoins.
Apart from the crypto market, gold and silver also increased in price. Investors are on the lookout to see if Bitcoin and cryptocurrencies, in general, will separate from the traditional markets.
The bitcoin bulls managed to push bitcoin above the $6400 resistance level, and they are currently aiming higher and higher.
Even though there was a major selloff in cryptocurrencies in the last few weeks, Bitcoin still remains dominant at 64%. The next few days and weeks will be the main game-changer as traders and investors, in general, are curious to know how far the crypto market can grow.
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