Most of the cryptocurrencies struggled over a massive fall this week, but the trend seems to have changed. This upturn inspires the crypto society, but the critics still have lots to say.
The cryptocurrency market seems to be changing as a coherent whole. That is well illustrated by the change in price of the top ten cryptocurrencies by market capitalization excluding Bitcoin Cash. The maximum gain is demonstrated by Bitcoin – 1.24% during the last 24 hours that brought it to the price of $8,260 according to CoinMarketCap.
The worst situation is for Litecoin with 3.47% decline. The top cryptocurrencies are moving in the same way and that provokes some thoughts. Goldman Sachs’ head of investment research Steve Strongin said:
“The high correlation between the different crypto currencies worries me. Contrary to what one would expect in a rational market, new currencies don’t seem to reduce the value of old currencies; they all seem to move as a single asset class.”
The Bitcoin’s positive trend has inspired hope in the future of the dominant cryptocurrency. Nevertheless, the persistence of the price change is under great doubt. High volatility stays one of the key features of cryptocurrencies. But even experts in the sphere acknowledge the fact that short-term predictions are practically impossible. Moreover, the ongoing rise of Bitcoin seems to be in spite of the critics’ opinions. Just a few days ago World Bank Group President Jim Yong Kim made a widely quoted statement:
“In terms of using Bitcoin or some of the cryptocurrencies, we are also looking at it, but I’m told the vast majority of cryptocurrencies are basically Ponzi schemes.”
Bitcoin and its rivals are widely discussed these days, but Bitcoin Cash stays the hero of the day. This cryptocurrency that split from its dominant big brother just in August 2017 seems to outperform its competitors. During the last 24 hours it demonstrated 18.59% rise. That is an evident bull race – but analytics stay skeptical. The dynamics is promising but the trend is not strong enough to instill confidence.
This year started tough for the cryptocurrencies. Recent news from China and South Korea shattered the fragile positions of top cryptocurrencies. The Bitcoin frenzy of December 2017 is over and has been replaced by the criticism. However, some experts have an opposite opinion on the recent events. For example, Christian Catalini, an assistant professor at MIT Sloan School of Management , showed the other side of the medal:
“What’s useful is that as regulation will become more clear, that will actually allow the space overall to thrive.”
The cryptocurrency market is changing and that changes are fast. The falls and rises of Bitcoin make headlines on regular basis. Ethereum, Ripple, Litecoin and Bitcoin Cash attract more and more supporters. However, even those people who do not want to risk their assets can still enjoy searching the cryptocurrencies. Just to find out that one can buy PutinCoin (#563 by market cap) and TrumpCoin (#765 by market cap) or join the extremely popular Shiba Inu dog meme by investing in Dogecoin (#43 by market cap).