Ethereum rally and hope for XRP
August 03, 2020 @ 16:28 +03:00
Bitcoin has confirmed that long sideways price trends can end with growth. High volatility remains a highly important part of the crypto market. Following the spike in volatility, investors once again turned their attention to the market. According to CoinMarketCap, the total crypto market capitalization grew by $80 bln or 30% last month, having confidently overcome $300 bln.
Bitcoin has been increasing, and on Sunday morning the first digital currency touched $12K. However, due to the wave of profit-taking, it quickly corrected to $11K. Taking into account the relatively low liquidity of the crypto market, a small number of large orders is capable of launching waves in both directions.
An important positive change for the crypto market can also be a decrease in the Bitcoin domination index along with the growth of the altcoins. Over the last month, this metric has shown a decline of almost 4%. The leading altcoin Ethereum (ETH) touched $400 over the weekend, almost doubling in price since the beginning of the year.
For a long time, XRP has been causing negative vibrations among market participants, however, after the news related to the launch of the beta P2P version of the Payburner payment platform based on the token, it jumped by 35% in the last 7 days. At the moment, the token is very far from the “enter” price levels for many investors of the past, however, the current rally may attract new investors to the coin.
Winklevoss twins are using a new rally in the crypto market to make loud announcements. For example, Cameron Winklevoss said that not investing in bitcoin today is a fatal mistake, as if you had not invested in Amazon and other technology companies in the early 2000s. However, it is worth remembering that in addition to Amazon, there were a huge number of companies, whose fate was much more “inglorious”.
According to CoinMarketCap, the crypto market now consists of almost six thousand cryptocurrencies. As in the case with “dotcoms,” there will remain a few dozen. There is no doubt that Winklevoss twins have the gift of foresight, but they are unlikely to announce to the public what price level is now considered the “ceiling” for Bitcoin. A lot of things have changed in the structure of the crypto market since 2017, and this cannot be disregarded.
The FxPro Analyst Team