In a volatile period for cryptocurrency prices, the sentiment around Bitcoin is fragile. However, if we look at other digital currencies, we can see that the sentiment surrounding them is far more stable. Let’s take a look at Dash, Ripple, Litecoin, and Ethereum. In particular, I’ll focus on the Ripple currency. These have been steadily rising over the past few months, and are showing signs of reversing.
On Wednesday, bitcoin dipped to three-month lows. The flagship cryptocurrency hit $30,000 at one point. Its subsequent fall extended a week of selling in the crypto space. Ether, the second most popular cryptocurrency, fell more than 40% in just 24 hours. Experts say it may be on the cusp of price discovery. But what should investors do? Here are some key things to keep in mind.
While most altcoins are in the red after recent heists, Litecoin is doing just fine. It is trading at $179, down $55 from its 24 hour high of $233. It is also up $8 from its lowest value in the last 24 hours. However, with a total market cap of just over 3 billion bitcoin, Litecoin is not as big of a concern as Bitcoin.
After last week’s selloff, bitcoin, ethereum, and Dash recovered from their massive losses, recovering above $30000 in the Asian session. This comes as the price of Bitcoin fell below $30,000 on Thursday and other cryptocurrencies rose in tandem. Many cryptocurrencies, like Litecoin, Zcash, and Dash, claim to offer greater anonymity. This week, however, cryptocurrency prices took a further tumble, falling below $2800.
In spite of the massive losses, sentiment in the cryptocurrency market remains fragile. Bitcoin, the most valuable cryptocurrency by market value, is trading about $30,500 at 11:40 GMT on Thursday, recovering from its 16-month low of $25,400. Still, bitcoin remains well below its week-ago levels of about $40,000, and is heading for its seventh straight weekly loss. Scottie Siu, funding director of the Axion World Asset Administration, which runs a crypto index fund, said that Bitcoin has been suffering more than most other assets over the last few months.
Despite the massive losses, sentiment towards crypto is still shaky. The collapse of stablecoin TerraUSD sent ripples through cryptocurrency markets. Though the stablecoin recovered, it remained below its intended peg of $1, and Luna, its affiliated token, also faltered. Despite the rally, the sentiment around crypto is still fragile. Even if it has recovered from its 16-month low of $25,400, Bitcoin is still down a lot.
Tether, a stablecoin, has taken its currency from the brink of collapse to the edge of recovery. The cryptocurrency’s recent losses have exacerbated investor apprehension and forced the company to issue a rebuttal. Tether recently admitted that it only had reserves equivalent to 74% of the total amount of coins in circulation and that it was holding most of its reserves in debt. Despite numerous calls to audit its reserves, Tether has refused to do so. The company must file quarterly reports to the SEC, but the first disclosure was nothing more than two pie charts and one paragraph.