Correction in the cryptocurrency market is the best time for new purchases

After setting a new record in terms of capitalization – more than $ 2 trillion – the global cryptocurrency market moved to a correction. From April 5 to 8, Bitcoin (BTC) fell by 5.4% (from $ 59,780 to $ 56,575), ether (ETH) – by 5.7% (from $ 2,129 to $ 2008), ripple (XRP) – by 12.3 % (from $ 1.07 to $ 0.94), cardanol (ADA) – by 9.8% (from $ 1.32 to $ 1.19). At the same time, all analysts are confident that the correction will be short-term and very soon the market will turn to growth again. So now is the time to expand your crypto portfolio by taking advantage of the price drawdown. The main question is which of the leading cryptocurrencies makes sense to buy today.

Over the past month, Bitcoin has lost a lot of investor sympathy, as it lost ground and dropped below $ 60,000. Moreover, according to Coin telegraph calculations, 90% of altcoins from the top 50 coins showed higher returns in the last 90 days than Bitcoin, and the bitcoin dominance index »Decreased to the lowest level since the beginning of the year (58.6%). Meanwhile, air over the previous two weeks has risen in price by 35% and on April 6 set a new price record – $ 2143.

Leading strategist at Exanthem Janis Kikois believes that Bitcoin is too early to be discounted: although the asset showed slippage near the $ 60,000 psychological line, this is most likely a temporary phenomenon. As for the ether, it remains the second after bitcoin throughout its history, the expert notes.

“In 2017, during the previous crypto-hype, the share of Ethereum in the capitalization of the entire crypto market grew from 4 to 31%, but then melted again to 7%,” recalls Kikois. – The current growth of up to 12% is an early manifestation of yet another mania. The share of ether may well grow to 20% and even up to 30% with a further rally in cryptocurrencies. But it’s hard to believe that ether can beat bitcoin in popularity with retail investors. ”

Of course, ether is not able to move bitcoin from the position of the leader of the cryptocurrency market in the world, Michael Ross-Johnson, CEO of the cryptocurrency p2p platform Chatted, is also sure. A payment community has already formed around bitcoin, the asset is used in completely different areas as a means of payment, which the ether does not yet fully possess, he points out.

At the same time, Ross-Johnson does not exclude that ether can increase its market share due to the influx of new users into cryptocurrencies. This is already happening – now there are many projects based on the Ethereum blockchain (Defib, etc.), which are becoming extremely popular among users. “People enter the crypto market through ether tools, and gradually the share of such users is growing,” the expert says.

The head of the analytical department of Markets Artem Dev. recalls that since the beginning of April, the capitalization of ether has grown by $ 30 billion. According to his observations, such rates indicate the serious potential of this cryptocurrency. “It is actively bought by novice investors, since ether is much cheaper than bitcoin, but at the same time it makes it possible to understand the mechanics of the market and make a profit,” Dev. notes.

In addition, many institutional investors are now entering the ether market, interested in creating their own decentralized finance. “Ether is optimal for these purposes, since the asset is developing rapidly, it scales infrastructurally, some improvements, new protocols, etc. are constantly appearing,” the expert says, recalling that the ether 2.0 update will be released soon. “There is a continuous improvement of the platform, which is becoming more decentralized.

And therefore, larger players can connect to ordinary investors on the air, as happened last year with bitcoin, “Dev. said. Institutional investors are likely to increasingly turn to ether, following the example of bitcoin, which grew rapidly last year on the fact that large corporations and banks invested in the asset, Ross-Johnson agrees. This has become an incentive for the growth of the entire crypto market, so now ether can also become the locomotive of such a movement.

The window for investments in broadcasting is still open, Dev. said. And although the quite expected correction of the highly overvalued bitcoin will pull the entire market with it, in the future, both currencies will still grow, the expert is sure. The immediate prospects for the broadcast are very attractive, agrees Kikois. He notes that the crypto market is now actively looking for undervalued stars, maintaining demand for cryptocurrencies, but at the same time preventing Bitcoin from growing. “In 2017, the most violent rally in altcoins took place just when bitcoin was already stuck at the top of $ 20,000. bring down the price of altcoins, including ether, ”the expert sums up.