The cryptocurrency market started showing signs of a slight but stabilizing rally in early morning trading (AEST GMT +10) on Saturday after Friday’s bloodbath wiped billions of dollars from capitalization. US $ 2 trillion cryptocurrency market.
The world’s largest BTC cryptocurrency managed to break above $ 50,000 from Friday’s low of $ 47,000. Among the other 9 variable-priced digital coins in the Big 10, Ether (ETH) is just above $ 2300, Ripple (XRP) $ 1.15, Binance Coin (BNB) $ 520, cardano (ADA) 1.13 USD, ChainLink (Link) US $ 34, Dogecoin (DOGE) US $ 0.24, Stellar (XLM) $ 0.44, Vechain (VET) US $ 0.19 and Litecoin (LTC) US $ 238.
The slight rally in the crypto market was likely helped by the rise in US stocks on Friday afternoon after strong economic data reversed a Wall Street decline as the greenback fell, returning some of its appeal from safe haven to gold (XAU / USD) towards the level of US $ 1,800. In addition to the weakness of the US dollar, lower yields on treasury bills and the prospect of a correction in equities have attracted investor interest in bullion. Meanwhile, strong data lifted the euro (EUR / USD) while crude oil also rose 1%, but failed to reverse the negative trend for the week. .
Losses in the cryptocurrency market are still widespread and the alignment of several risk factors remains intact for now.
The last week has been a costly lesson for newbies filling their wallets with cryptocurrencies “ on the rise ”, believing that the valuations of everything they were buying could only go up. The flush crash also showed novices the generally overlooked intrinsic vulnerability of cryptocurrencies to possible government regulations.
A further near-term recovery is still likely as many techies, as well as old school fundamental investors prefer to chase the bargains and value in a declining market after signs of panic or capitulation by the bulls. While trying to time the market is a dumb game, risk factors, especially when it comes to seasonality, have always been important.