Bitcoin price has hit $6,300 as Ethereum price recoups to $210. The significance of the price movement is that the new values indicate the easing of downward pressure on these two major Cryptocurrencies that have of late being at the forefront of volatility shocks on the crypto markets. For instance, on Monday, Bitcoin lost 10% of its value as Ethereum shed of 3%. Collectively, this is a capitulation of approximately 10%.
The Two Biggest Cryptocurrencies Sway The Market
Ethereum and Bitcoin are the leading Cryptocurrencies with a combined market share of more than $132 billion out of the $200 billion. On an individual scale, Bitcoin has a market share of $112 billion as Ethereum has a market share of $21 billion. In this perspective, any positive gain or fluctuation of the prices of these two digital assets has a profound effect on the general crypto market performance.
In this regard, Cryptocurrencies are registering bullish trends due to the pace-setting effect of Bitcoin and Ethereum. For instance, Ripple’s XRP hit $0.33 which represents a 20% gain. Cardano also had a gain of 8%. Other gains were recorded on Stellar Lumens, Steem, MKR, Ardor, Golem, etc.
On the other hand, a few Cryptocurrencies such as Tether and IOTA has bearish trends since they shed off 0.20% and 0.17% respectively according to Coin Market Cap.
Ethereum Swap Is Raising Volatility Concerns
In the recent past, plans to upgrade or alter any Cryptocurrencies have often resulted in massive price gains or price fluctuations. The unfortunate part is that shocks on any major Cryptocurrency often affects the whole market.
There is an ongoing initiative by BitMEX to unveil 100x perpetual swap option for ETH. Although analysts believe that the move has been successful of late as Ethereum price has gained by 6.73% in the past 24 hours, this continues to be a major source of concern for investors as the project might prove to be unsustainable in the new future and be abandoned with devastating effect on ETH price performance. However, the market jitters might be eroded once the team assures investors that the project is successful.
Apart From Ethereum, Bitcoin Price Is Being Closely Monitored
Majority of investors and most of Crypto market indicators place substantial weight on the price of Bitcoin as a tool for measuring market trends to gauge the profitability of investments. Hence, the gain of Bitcoin to levels of above $6,300 that had been marked as a resistance level on the SMA50 to SMA100 analysis. This is a moving average analysis that forecasts the short-term moving averages of prices and by doing so, identify resistance levels that the prices need to surpass to sustain the bullish momentum.
The price surge in Bitcoin, therefore, indicates that the investors are having a sigh of relief as the downward pressure on their crypto investments is, for the time being, over. This provides an incentive for increased market activity for speculative investors.
Josh Fraser, the co-Founder of MarketWatch, is assuring investors that Cryptocurrency prices might regain their prices in the first half of 2018. According to him, the digital assets market is overcoming volatility and maturing steadily.