Bitcoin has updated its annual high, trading volumes are constantly increasing, and the price of several altcoins at once has increased by more than 50% over the past few days
Indicator analyzed the situation on the digital money market especially for RBC-Crypto. Over the past week, only one of the 100 largest cryptocurrencies in terms of capitalization has lost over 10% of the price, and the number of requests for the keyword “Bitcoin” has sharply increased again.
Bitcoin price analysis
The past week was extremely positive for Bitcoin and the market as a whole – at the close of Tuesday, the price of BTC was $ 8,718, which corresponds to an increase of 9.37% compared to the closing price of the previous week. At the same time, capitalization reached $ 154 billion, and many altcoins also showed positive dynamics, especially projects with large capitalization.
Bitcoin price reached $ 8,891, which is a new high in the last year. Despite this rapid growth, market sentiment remains extremely positive regarding the future development of the exchange rate.
Having overcome the resistance at around $ 8,500, the next critical level for the first cryptocurrency will be $ 10,000. If the price can overcome it, bitcoin will give market participants another signal about the strength of the bullish trend. Potentially, the value can come to levels that we only saw during the rally at the end of 2017 – beginning of 2018.
Over the past week, there was no serious news that could affect the development of the exchange rate, but there is an interesting trend – the cryptocurrency market ignores the weakness of traditional markets, which are declining amid the escalation of the “trade war” between the PRC and the United States. This fact can be regarded as a strong signal to investors that Bitcoin is not suffering from geopolitical tensions.
If BTC and other cryptocurrencies hold their ground, they could become alternative instruments for traditional investors, leading to wider adoption of digital assets, and in the long term, will lead to further increases in value. With the current market capitalization of $ 267 billion, cryptocurrencies have already become a noticeable asset class, but with capitalization growing, more and more traditional investors will not be able to ignore this market.
Another positive signal is the constant increase in trading volumes, currently exceeding the values of the end of 2017 – the beginning of 2018, with current daily values ranging from $ 20 billion to $ 30 billion. Persistently high values of trading volumes are a key indicator of the growing interest in digital assets.
All projects from the top 10 by market capitalization closed in the green zone, except for the stable coin Tether (USDT). Three of them overtook Bitcoin, and EOS and Lite coin (LTC) became the leaders in growth, adding 27.7% and 25.44% to the value, respectively. The XRP token also posted an impressive 11.72% growth, while Cardano (ADA) lagged slightly behind Bitcoin with 9.25%.
The rise of EOS may be related to an upcoming event scheduled for June 1 in Washington DC, USA. At this event, an updated roadmap should be presented to the public, as well as important news about the development of the project. EOS is currently ranked 5th among all cryptocurrencies by market capitalization and is the only competitor to Ethereum in the top 5.
The number of searches on Google for the keywords “Bitcoin”, “Blockchain” and “Cryptocurrency” were at consistently high levels during the first half of the past week. On May 26, after Bitcoin finished its rally just below $ 9000, there was a jump in the number of searches for the keyword “Bitcoin”, and by the end of the week, this figure remained above the opening levels.
Top 5 growth leaders
The top 5 growth leaders out of the top 100 by market capitalization demonstrated impressive growth, each of the projects adding more than 50% to the cost.
Theta Fuel (TFUEL) topped the list, which rose 95.24%, while Aurora (AOA) came in second with 84.65%. Maximina Coin (MXM), Mixing (XIN) and Bitterant (BTT) round out the top five with results of 60.05%, 59.02% and 51.96%, respectively.
On the morning of December 4, the price of bitcoin on the Finance crypto exchange dropped to $ 42 thousand (a fall of more than 20%). As of 14:40 Moscow time, the asset is trading at $ 46.3 thousand. Against the background of the collapse of the first cryptocurrency, the total capitalization of the digital asset market fell to $ 2.3 trillion. Also, a sharp collapse in quotations caused massive liquidations of traders’ positions for $ 2.5 billion.
Nothing extraordinary
The decline in the cost of bitcoin is a fairly typical reaction of the market to the renewal of the historical maximum, says Nikita Zuora, senior analyst at Bestchange.ru. Since then, the asset has fallen in price by 32%. The analyst recalled that in the spring of this year, after reaching $ 64 thousand, the price of bitcoin began to decline and fell by almost 45% over the month. At the end of July, the value of the cryptocurrency began to actively recover, and after a few months it set a new maximum.
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