After the drastic falls in prices, crypto market is stabilizing, with Bitcoin gaining more traction and increasing its market dominance.
The crypto market has recently suffered a drastic sell-off of upwards of 20%, but now it is more or less stable. Bitcoin, the leading cryptocurrency, has found some semblance support at the $6,300 range. Since last Thursday, the number one digital coin has gained over 1% and is steadily recovering from the recent lows reached at $6,116 on September 8. At the moment of writing, Bitcoin price makes up $6,408.83, which is up 2.03% in the past 24 hours.
Other currencies have also been faring well. In the last 24 hours, Ethereum and XRP have gained 9.43% and 4.5% respectively. Ethereum current price is $188.14, XRP price is $0.27 per coin. However, some think that this short-term price action is not a measure of crypto market welfale, as the price of the foremost crypto asset remains above the ever so important lines of support that reside at $5,800 and $6,000, which have been referred to as key levels to watch over crypto’s recent history.
As for Ethereum, it has suffered a lot, as its price fell by nearly 20% last week, which is a substantial amount. The drop caused numerous disputes about the currency’s future. Some experts explained it by a decline in ICO activity. ICOs spent over $30 million (or 153,500 Ethereum), and a majority of the tokens were sold on spot market exchanges.
Ethereum is now stabilizing, but there are currencies that are still left behind. EOS, Stellar Lumens, Cardano and Bitcoin Cash have barely seen any price action over the past day.
Some hope that a bull run on the crypto market is not long in coming. Mohamed El-Erian, the chief economic advisor at Allianz and a famous financial market analyst, has revealed that he is quite optimistic about the near future of crypto industry:
“Crypto is not dead, and certainly the underlying technology is not dead. We’re going to see more widespread adoption, by both the private and public sector, of the blockchain technology and related technologies.”
He further added:
“In terms of crypto, what we’re getting is the realization that adoption is not going to be as big and as quick as the proponents of crypto would like. I think it’s going to be there, it’s going to last for a long time, it’s going to play a role in the ecosystem, but it’s not going to be the currency that a lot of proponents would like it to be.”
The market recovery and relative stability have led to improvment on recent trade developments, as traders are encouraged to flock back to riskier assets like commodities and cryptocurrencies.
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