The bitcoin spot market (BTC/USD) was pounded over the last week. Price action fell below $6,500 before a recovery of seven percent occurred towards $7,100. Other cryptocurrency spot markets recovered as well.
Since March 30, the valuation of the entire cryptocurrency market has increased to $268 billion. This is up almost eight percent from $250 billion.
As, the case would seem, more headlines changed the mood in the market. Professor Emin Gun Sirer from Cornell University, said in a Tweet that, “Indeed, a mature market should be decentralized, with independent coin prices decoupled from each other, each moving in concert with the future prospects of the specific coin.” Professor Emin Gun Sirer is an associate professor of Computer Science at Cornell University. He is also Co-Director of the Initiative for Cryptocurrencies and Smart Contracts.
Throughout the months of February and March, the cryptocurrency markets have shown investors correlated movements. The majority of major, as well as minor, digital and alt-coins have shown similar gain and loss patterns. They have also shown a lot of volatility.
On Saturday, the price of bitcoin increased by six percent, Ripple Ethereum and Litecoin rose by six percent also. Of late the majority of alt-coins have been moving in the same direction by similar amounts. Barring the odd case of pump and dump here and there, the crypto markets have been fairly predictable and unified.
As Bitcoin Recovers, Cryptocurrency Spot Markets have been plagued by Extreme Volatility
Taking into account the high volatility in the cryptocurrency universe, and its price correlation action, the digital coin market has seen any real stabilization following its latest price correction. More time is probably needed before a more meaningful recovery.
The global digital coin markets saw a rebound from $250 billion, and big digital currencies such as bitcoin and Ethereum have been in a position to challenge their levels of resistance. However, volume remains relatively low in all the cryptocurrency exchanges.
The most recent correction in Bitcoin has been rough. Millions has been lost for many traders and institutions. However, it’s imperative to be aware that we have seen this in the years 2013 and in 2018. The same identical patterns.
This latest correction in bitcoin is the third worst of this particular cryptocurrency on record. Bitcoin has seen two corrections of 80 percent. One in 2013 and another in 2014. Both took almost a year for traders to see bitcoin recovers enough to make them happy.
Traders should also note that the spot markets, for digital coins, were largely unaffected by the restriction of cryptocurrency advertisements or other regulation news. This latest correction, stems more from the market recognising that most digital coins have gotten so expensive that buying them becomes hard to justify..