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Bitcoin and Ethereum Gains Spur Cryptocurrency Market Beyond $500 Billion

Last Updated March 4, 2021 5:07 PM
Joseph Young
Last Updated March 4, 2021 5:07 PM

Bitcoin and Ethereum, two of the most valuable cryptocurrencies in the global market, have led the cryptocurrency market to surpass $450 billion and based on the current trend, it is likely that the market crosses the $0.5 trillion mark within May.

Ether Up 11%

Ether, the native cryptocurrency of the Ethereum blockchain protocol, has increased by more than 11 percent against the US dollar and 6 percent against bitcoin. The market valuation of Ether has increased to $79 billion and is en route to cross $80 billion in the next 24 hours.

The rapid increase in the price of Ether is said to have been fueled by the analysis of respected experts and analysts who have emphasized that Ether is not a security under the laws of the US Securities and Exchange Commission (SEC).

Ethereum co-founder Joseph Lubin, who oversees a large-scale blockchain development studio ConsenSys, said that the founding team of Ethereum conducted legal due diligence to ensure Ethereum remained in compliance with applicable regulations.

“We spent a tremendous amount of time with lawyers in the US and in other countries, and are extremely comfortable that it is not a security; it never was a security,” said Lubin, “we are absolutely unconcerned about the current discussions.”

Increasing confidence towards the inapplicability of Ether as a security is likely fueling the demand for the cryptocurrency. As tokens such as WanChain, Decentraland, Ontology, EOS, and Ziliqa continue to record strong gains against both bitcoin and the US dollar, analyst expect the price of Ether to increase further in the short-term.

Technical indicators suggest a strong short-term trend and momentum for Ether. But, given that the Relative Strength Index (RSI) of Ether is in the 73 regions, unless the current volume of Ether across major cryptocurrency exchanges can be sustained, it is likely that the price of Ether experiences a slight correction before initiating another rally.

Real Story is Bitcoin

At the time of reporting, the price of bitcoin remains at $9,700 and in consideration of its growth over the past 48 hours, the price of bitcoin is expected to surpass the $10,000 mark in the short-term, possibly over the next 24 hours.

Over the past two weeks, bitcoin has continued to demonstrate a consistent increase in value, experiencing minor drops and corrections along the way. Its Relative Strength Index (RSI) and Williams’ Percent Range (WPR) are in the neutral zone, which places bitcoin in an ideal position to record strong gains in the short-term.

With the market nearly up two-fold since early April, analysts have already started to conclude that the cryptocurrency market has entered a bull market and have predicted the value of most cryptocurrencies to increase, especially major cryptocurrencies such as bitcoin and Ethereum.

Less than a week ago, the daily trading volume of the cryptocurrency market hovered around $20 billion. As of May 4, the volume of the market is $30 billion, and as the volume continues to increase, the demand for the cryptocurrency market is expected to rise.