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A cryptocurrency is a form of digital money that is decentralized and based on blockchain technology. Despite the fact that Bitcoin and Ethereum have been the most well-known cryptocurrencies, there are over 5,000 other cryptocurrencies in circulation.
There’s been a huge dip in the Crypto market lately but experts say that it’s too early to discuss the end of cryptocurrency.
After a tumultuous week for digital tokens, the bitcoin price rose 1% to $35,630 today, after falling as low as $34,000 on Saturday, its lowest level since July 2021. Since its record high of $69,000 in November 2021, the world’s largest cryptocurrency has roughly half in value.
Meanwhile, some reports suggest that CoinGecko, the worldwide cryptocurrency market cap increased marginally to $1.74 trillion today, owing to a modest increase in crypto prices.
SEE ALSO: Crypto Market Falls By $1 Trillion In Market Value; Twitter Finds A Way To Make It About Memes
“Unfortunately, crypto is still interrelated to stocks and the stats of stock market will continue to affect the crypto market as well,” says CEO and Co-founder of Mudrex, Edul Patel notes The Economic Times.
“Also, several firms are still hovering around billions, crypto still have a chance to bounce back and it doesn’t fall from the current state,” he added.
Most digital assets were damaged by the sell-off, and Ether, the world’s second-largest cryptocurrency, dropped to $2,300 on Saturday, its lowest level since July 2021. It was, however, up 0.5 percent today to $2,450. Similarly, Binance Coin was trading at $371, up over 1%.
“The crypto market has seen many ups and downfalls in the past few years and it got back on track every single time,” says CEO and founder of Bitbns, Gaurav Dahake.
The price of Dogecoin increased by nearly 2% to $0.13, while the price of Shiba Inu dipped slightly to $0.000022. Other cryptos’ performance was uneven, with advances seen in XRP, Terra, Stellar, and Avalanche, while losses were seen in Cardano, Solana, and Polygon during the past 24 hours.
“Ethereum plummeted below $2,300, and other altcoins followed suit, taking a significant hit.” In the last few days, Ethereum has lost ground against Bitcoin.
Based on the reports, the ascending channel pattern continues to trade within the daily trend pattern. At 0.0658, immediate support is likely. “The RSI fell below 30 for the first time since December 2020,” stated WazirX COO Siddharth Menon.
Since the beginning of the year, cryptocurrencies and equities have plummeted in lockstep, owing to investor concerns about how a series of predicted Federal Reserve interest rate hikes will affect markets. On Friday, the rationale for even more prudence was reaffirmed.
Unlike national currencies like the US dollar or the Euro, there is no central authority that manages and maintains the value of a cryptocurrency. However, these obligations are distributed over the internet among bitcoin users.
Besides, the American processing giant Intel is planning to launch a bitcoin mining chip, and several banks are set to bring bitcoin trading in early 2022.
According to Bloomberg, US Vice President Joe Biden’s administration is planning to announce a first government-wide strategy for digital assets as early as next month and will urge federal departments to analyze the dangers and possibilities they present.
Cover Image: Unsplash
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