The cryptocurrency market is incredibly volatile. This is one of its most attractive yet risky feature for the consumer sector. The concept of crypto gained a lot of popularity and recognition in the business sector because of its higher usability and distinctiveness from the conventional currencies. Cryptocurrencies, like Bitcoin have emerged as an even more effective alternative to the faulty ecosystem of traditional banks and global currencies. By creating a more user-friendly environment, cryptos have helped and assisted the consumers in several ways.
Major cryptocurrencies, like Bitcoin and Ethereum have earned a huge name for themselves in the crypto market. These top two cryptocurrencies in the market have proved their potential from time to time, both as an investment and as a means of payment or transaction. What started off from a few cents are now valued in thousands of dollars, Bitcoin clearly ahead of Ether. However, there are several other cryptocurrencies in the market as well. All of which combine together to make it a trillion dollar industry.
Ongoing market volatility and price fluctuations
Bitcoin is considered to be a trendsetter in the crypto community. Almost every altcoin follows the trajectory of Bitcoin. The price fluctuation of Bitcoin carries a strong influence over the rest of the crypto industry. However, the prices of Bitcoin experienced massive volatility in the last few months. Firstly, it reached an all-time high of over $64,000 and then it crashed to a low of even below $28,000. If this was not enough, Bitcoin rallied to over $40K in about seven to ten days after falling below the $30K support level. Bitcoin was stuck in the range of $30,000-$40,000 for several weeks. Therefore, its breaking out of this range is a major news for crypto enthusiasts.
Nonetheless, the price of Bitcoin has stormed past $40K, and is currently valued at over $41,850. For a short period of time, it also went over $42,200. However, Bitcoin has successfully covered the resistance level of $41K, and the next resistance level comes at $44K for the crypto giant. It is yet to be seen if Bitcoin maintains its bullish pattern or not. If it is able to maintain a strong market sentiment, then the ongoing rally is expected to cheer the struggling digital coin market. Currently, the investors are eyeing the $50,000 as their next target.
What do experts and analysts of the crypto market believe?
Market experts and analysts have different opinions and views of the current market. However, they are clearly of the view that these small cycles of the market are nothing but a fake trap. Therefore, it will take a few constant days or even weeks for the current pattern to mature and prove its authenticity. Also, they advise traders to refrain from falling prey to the attractive market patterns. The experts remain firm on guaranteeing a long term bullish sentiment of the crypto market.
There is also an opinion that the institutional investors are greedily looking at the market performance of mainly Bitcoin, and other cryptocurrencies. If this happens, this could fasten the adoption of various cryptos in the public and business sector. Analysts also say that this current pattern could strongly damage the low scale traders and investors if the key players of the market keep dumping. Therefore, they are of the view that the sustainability levels of the market are currently very low. The low trading volumes go contrary to the bullish perspective of the crypto market. Nonetheless, if constant corrections keep the market up and running, then there can be plenty of market options for the traders and investors.
Many experts have went on to predict six digit figures for Bitcoin’s value in the next year. However, these claims are farfetched as Bitcoin is current about 35 percent below its all-time high value of over $64,000. On the other hand, several updates and upgrades are due on the projects of both, Bitcoin and Ethereum. These upgrades might take place in the end of this year, and can prove to be a game changer for the crypto assets. In the longer run, it could also positively influence the altcoins of the market. Despite all these analyses, we are yet to see how the market unfolds in the coming weeks. The unpredictability of the market ceases to shock everyone in the crypto community and thus, no claims can be proven authentic in this form of market.