What’s wrong
After Friday’s sold-out day, the crypto market is showing recovery momentum on Saturday. As of 10 am Eastern Standard Time, Bitcoin ((((CRYPTO: BTC). It rose about 3.3% from Friday’s stock market Closing Bell. in the meantime, Ethereum ((((Cryptography: ETH). When Dogecoinof ((((CRYPTO: DOGE). Tokens increased by about 6.4% and 6%, respectively, over the same period.
Cryptocurrency prices began to soar in October and continued to rise until mid-November when momentum began to reverse. The entire cryptocurrency market continued to decline in December as investors considered regulatory risk factors and the potential for digital token valuations to move towards a longer bearish cycle. That said, the crypto market actually looks relatively calm at this point.
Image source: Getty Images.
So what
Bitcoin hit a lifetime high of $ 68,990.90 per token last month, but tokens fell below $ 50,000 per token mark early in December trading and are now trading at around $ 46,300 per coin. Cryptocurrencies are down about 23% from last month and down about 33% from their highests.
Bitcoin recorded a strong performance this year and is still the largest Cryptocurrency Much more, there are signs that the market is shifting to another category of tokens. Bitcoin can be used as a currency or speculative investment vehicle, but most of the market excitement seems to be built around tokens connected to blockchain networks and applications focused on services and development. ..
In dollar terms, Ethereum He has led the responsibility for the rotation of the crypto market to cryptocurrencies backed by applications. The price of network Ethereum tokens has skyrocketed as the adoption of network smart contracts and application building capabilities has increased. Some investors and analysts believe this momentum will lead to “flipping.” This is the moment when Ethereum’s market capitalization exceeds Bitcoin. The bearish cryptocurrency momentum last month reduced Ether by just 8%, suggesting that tokens are stronger than Bitcoin.
Meanwhile, Dogecoin has fallen about 29% from last month and about 75% from its highs. The price per token of Dogecoin peaked at around $ 0.69 in May, but fell quickly as investors made profits following explosive profits. Investors have generally become more reluctant to take risks, and as attention has shifted to other meme tokens, tokens have had a hard time regaining ground.
So
Despite the dramatic price fluctuations, 2021 was a great return year for the wider crypto market.
Bitcoin price Data by Y Charts
Although lagging behind other cryptocurrencies that have made even stronger profits this year, Bitcoin has made strong profits across 2021 transactions and remains the top cryptocurrency. The market capitalization of tokens is currently about $ 892 billion, while the market capitalization of Ethereum is about $ 472 billion. The further incredible profits of Dogecoin helped it reach a market capitalization of $ 23 billion, which is currently ranked as the 11th largest cryptocurrency.
As we approach the end of 2021, investors are looking to weigh risks and analyze how to find new opportunities in digital tokens and blockchain-based projects. Federal Reserve policies, government stimuli, and other economic factors are generally thought to have a much greater impact on equity and real estate pricing, but these factors also affect the cryptocurrency market. It seems to have a big influence.
It could also have played an important role in the strong bull market phase of the crypto market last year, as the ability to secure low interest rate loans was filtered to boost stock prices. Cryptocurrency valuation will be bearish pressure if investors generally dislike risk as the Federal Reserve raises interest rates three times next year and could ease stimulating spending You may face it. For investors looking for exposure to crypto space, selling may offer a valuable buying opportunity, but the dollar cost averaging method may be less risky than making a large investment at once. there is.
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