Cryptocurrency enthusiasts will have a hard time figuring out which chart to look at first right now. Bitcoin is seeing significant gains, pushing the price to new heights over $2,100. Ethereum is on a massive tear as well, rocketing to the $200 mark overnight. There is so much action going on, it is hard to say what we can expect next. Always be careful when buying at the top, though, as cryptocurrency volatility can cause an immediate reversal at times.
Everything is Booming In Crypto
It is rather uncommon to see so many things go up in value at the same time in the cryptocurrency world. Not too long ago, a Bitcoin price increase would often lead to alternative currencies plunging in value. That is no longer the case by any means. Instead, we now see major currencies go up simultaneously, as investors are scrambling to invest money in cryptocurrency right now.
To be more specific, the cryptocurrency market cap has undergone some major growth these past few weeks. About two weeks ago, we were still hovering between $40bn and $45bn. A more than respectable amount at that time, that much everyone could agree on. Bitcoin was the major cryptocurrency at that point, as it has the largest market cap. That has not changed all that much, despite the Bitcoin Dominance Index slowly reducing Bitcoin’s dominance to below the 50% threshold.
Fast forward to today, and the cryptocurrency market cap sits at $79.665bn. That is nearly double the amount we were at not that long ago. A lot of people are still puzzled as to where this money is coming from, and more importantly, what is being invested in. Bitcoin’s recent price surge is a direct result of fresh capital, as it remains the top cryptocurrency in the world. With a market cap pushing toward US$37bn, no one can deny the success Bitcoin has had over the past few years.
However, Bitcoin is not the only top dog to keep an eye on these days. Ripple’s XRP asset has seen an influx of capital these past few weeks, although it is seemingly running out of steam once again. The most recent Litecoin bull run did not materialize either, despite a brief spike to a much higher price. Both of these investment opportunities may rebound at any given time, though, but for now, they are both in consolidation mode.
The biggest gains are made by Ethereum as of right now. Less than a week ago, one ETH was valued at just under $100. Today, it is worth just over $200, according to Coinmarketcap. That is a major change in value over the course of one week. Some experts even predict ETH will surpass the $500 mark by the end of the year. Quite a bold statement, but given the way things are evolving in cryptocurrency right now, anything can happen.
It was only a matter of time until Ethereum saw a major price outbreak, though. A lot of people felt this currency has been undervalued for quite some time now. It will be interesting to see how the ETH price evolves over the coming weeks and months. Reaching the $500 mark seems a long way away, but it is not unlikely it may happen. Then again, speculation is running wild during times like these. Always trade with caution, and do not get caught up in the hype.
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