Crypto traders have today managed to recover from a panic episode that resulted in Bitcoin plunging below $30,000, losing all of the gains that the cryptocurrency had incurred this year. It’s been a good day for BTC holders, but an even better one for investors in Dogecoin, Cardano, and Ripple’s XRP.
Bitcoin today touched the $35,000 price zone again. The recovery, while relatively modest at just 5%, is important because, in the short term, it shows that the bulls are not yet willing to concede a BTC price of $30,000 or below.
From a high today of $35,295, the market’s leading crypto asset has retracted a bit and is currently trading at $34,866.
But it's not time to take out the champagne bottles just yet. Bitcoin is doing exactly what most keen observers would expect: bouncing to the average price and then falling back down again. To say there’s a new upward trend, experienced traders are likely waiting for a break out above $40,000.
Bitcoin seems to be following the movements of traditional markets today as well, as stocks showed marginal gains too. Apart from Amazon and Apple, the most important companies in the tech market are showing very positive numbers, with Tesla leading the way—perhaps to the resentment of Bitcoin maximalists who have a newfound villain in Elon Musk.
And if Bitcoin is moving at the pace of the stock market, the most important altcoins in the crypto market likewise followed the rhythm set by Bitcoin—even outperforming it.
Cardano, Dogecoin, and XRP are shining today within the top 10 crypto assets by market cap, with returns over 10% in the last 24 hours.
Elon Musk's favorite coin, Dogecoin, rose 14.68% throughout the day. That may have something to do with the fact that DOGE developers are working on a proposal to reduce transaction fees on its network by 90%. (It’s also just as likely though that it’s an overreaction to Bitcoin’s market moves today.)
Cardano, the third-generation blockchain that’s gunning for Ethereum, also saw double-digit gains for its native coin: ADA is up 14.48% in the last 24 hours. ADA fans may be excited by the forthcoming release of the Alonzo hard fork, which will enable support for smart contracts, making it possible to have “DeFi” on Cardano. (DeFi, shorthand for crypto-based financial products that function without third-party intermediaries, is today mostly found on Ethereum.)
XRP, meanwhile, is up 12.25% on the day. The coin is, of course, synonymous with the software company that spawned it, and Ripple’s recent courtroom victories against the SEC may have sparked some optimism among XRP holders.
Overall, roughly 90% of the top 100 cryptocurrencies by market cap are in the green today, which means crypto investors the world over have reason to smile—at least for a few hours.
The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.