Image default
Market Updates

The current events on the crypto market

Overview:

  • Crypto market with significant recovery on Monday
  • MATIC and UNI with big price increases
  • Investors use favorable rates to get started

On Monday, Bitcoin (BTC) hit a 7-day low with a price of $ 31,799. Many other cryptocurrencies also followed the negative trend of the largest cryptocurrency by market capitalization. But just one day later, the picture is changing and many digital currencies are recording price increases in the double-digit percentage range. The daily winners among the largest coins include Polygon (+90 %), Uniswap (+55 %) and VeChain (+46 %). Due to the turbulent last days, it is worthwhile to order and summarize the current events.

Bitcoin, Ethereum and Co report first gains after heavy losses

From the record high at $ 65,000, the Bitcoin is currently quite a bit away. As a result of the negative reports from China, the first companies decided to cancel their tents in the country of the Middle. The consequences are more far-reaching than initially hoped. In the past, there have already been more frequent reports of bans or restrictions on cryptocurrencies. However, in this case, the Chinese government is serious and prohibits financial service providers and traders from using cryptocurrencies. The well-known mining companies Huobi Mall, Hashcow and BTC.TOP then announced that it would discontinue its offering in China.

After the Chinese government already banned all crypto exchanges in 2017, China is now also likely to lose its status as a mining stronghold. Many companies are expected to move abroad in the near future. But not only the news from China caused panic sales among investors. Elon Musk also caused chaos with his tweets. First Tesla stopped any payments due to the poor climate balance of bitcoin, then further short messages from Musk hinted at a possible sale of Tesla’s BTC. The combination of both news finally caused the bitcoin to plummet.

In recent days, the entire crypto market recorded a continuous minus. Just 7 days ago, the price of bitcoin was almost $ 46,000. Overall, virtually all major crypto projects look back on a low to medium loss over the past 7 days. The hardest hit were Ripple (XRP), Polkadot (DOT), Litecoin (LTC) and EOS (EOS) with losses of around 40 percent. But the last 24 hours finally brought the long-awaited recovery. Investors enjoyed spontaneous price jumps of 20 to 40 percent. While Bitcoin is still at a high loss, the price is still about four times higher than a year ago.

Such is the state of affairs in the crypto market

Apparently, many traders used the current price level as an entry point. In addition, it was once again Tesla CEO Elon Musk, who took a stand on his favorite topic cryptocurrencies. In this case, positive, because he stated that in the” battle between classical currencies and crypto-currencies ” he supports the latter. As often happens, the price of bitcoin increased by 8 percent as a result of his tweet. The trend continued, and on Whit Monday, the BTC price increased by 16 percent. But the real winners are completely different coins. Uniswap (UNI) and Polygon (MATIC) recorded the highest increases among the largest coins by market capitalization.

Polygon, with a price increase of over 90 percent in the last 24 hours, is currently causing a sensation. The unique technology already allows scaling the Ethereum blockchain today. The interoperable approach enables secure transactions with immediate settlement. In recent weeks, the price of the project, renamed Polygon only in February 2021, has risen from a few cents to over $ 2. As is often the case with new projects, the price currently fluctuates violently, but in the long term Polygon is likely to be an interesting investment object.

Polygon (MATIC) in the 7-day chart (source)

The second winner of the day is Uniswap. The UNI Token is currently at about 25 US dollars and thus records an increase of 55 percent compared to the previous day. Having suffered from strong selling pressure in recent days, the token has risen to become one of the winners of the current recovery period in recent hours. The price fell to a level last reached at the beginning of the year. Many investors apparently see it as an ideal entry point.

Ethereum and Co in focus

Ethereum (ETH), the second largest cryptocurrency by market capitalization, also looks back on a successful start to the week. A price increase of over 24 percent caused the ETH price to rise to $ 2,640. After it had gone down continuously in recent days, the price has only positive price changes since Monday evening. A similar picture can also be seen with the Binance Coin (BNB). The utility token of the crypto exchange Binance is one of the winners of the year with an incredible price increase. The share price has also increased by 37 percent in the last few hours.

Cardano (ADA), Ripple (XRP) and Dogecoin (DOGE) were also able to make up for initial losses of the past few days with price increases of between 18 and 22 percent. Solana (SOL), Bitcoin Cash (BCH) and Chainlink (LINK) also performed strongly after the eventful days, rising by over 30 percent. Ethereum Classic (ETC), which has recently attracted attention by sudden price jumps, even increased by 43 percent. If you exclude the stablecoin projects from the overview of Coinmarketcap, there is currently no token or coin in the top 100 that has a loss in value in the last 24 hours.

Conclusion: Crypto market Shows Signs of Recovery

There are a number of reasons for the current losses on the crypto market. Planned tax reforms in the US, Elon Musk’s tweets, China’s crypto ban and Bitcoin’s poor climate balance. All the headlines caused price losses. After the weekend had gone downhill again, the entire market recovered on Whit Monday.

At present, it is too early to say whether the correction is over and a recovery is looming. Many investors are likely to use the current low prices of Bitcoin and Co as entry points. Many cryptocurrencies have lost some 50 percent or more in value in recent days, so that exciting investment objects are likely to offer themselves, especially for long-term investors.

Related posts

Spartan Group Invests $ 110 million in DeFi

Stanislav Melichar

Central banks get BIS support

Stanislav Melichar

Bitcoin Difficulty: 20% Slump Expected

Stanislav Melichar

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More