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Bitcoin Price Climbs to $9,200, Market Hits $420 Billion as Tokens Record Gains

Last Updated March 4, 2021 5:06 PM
Joseph Young
Last Updated March 4, 2021 5:06 PM

The bitcoin price has increased by around $400 over the past 24 hours, entering the $9,000 region and surpassing $9,200. On April 27, bitcoin experienced a sudden dip in price that sent it to the $8,800 mark. Throughout today, bitcoin and the rest of the market recorded strong gains as the valuation of the market rose to $420 billion.

EOS Up 15% Again

EOS has been one of the best performing Ethereum-based tokens throughout 2018 and over the past week, it has recorded massive gains against bitcoin, Ethereum, and the US dollar. Today, the price of EOS recorded a 16 percent gain against bitcoin, rising to 0.0020100 BTC or $18.5.

It overtook Litecoin to become the fifth largest cryptocurrency earlier this year and since then, it has nearly doubled in market cap. The market cap of Litecoin remains at $8.4 billion while EOS has gained a valuation of above $15 billion.

Tokens have generally performed well since early April as investors began to take more risks and allocated their funds in more volatile digital assets and currencies. The strong performance of tokens demonstrate the momentum of the cryptocurrency market and its swift recovery since a major correction occurred in late March.

Tokens such as ICON, WanChain, OmiseGo, Tron, and Storm have also recorded major gains against bitcoin and the US dollar over the past two weeks, securing strong momentum.

Bitcoin Trend

Bitcoin has been highly volatile throughout this week and analysts have suggested that the volatility may have been caused by the unexpected sale of the Mt. Gox trustee funds. It was revealed that on April 26, more than 17,000 bitcoins were moved from the wallet of Mt. Gox, possibly to another address or an exchange. The funds were likely moved to an exchange because that movement led to a domino effect across all major cryptocurrency exchanges and led the bitcoin price to fall substantially, by more than 10 percent.

The daily trading volume of bitcoin also remains relatively low at $7.6 billion. In March, when the bitcoin price surpassed $10,000 and remained in the $11,500 region, the daily trading volume of bitcoin was above $10 billion. In December 2017, its volume crossed $20 billion.

The fact that the daily trading volume of EOS is more than 50 percent of bitcoin’s volume suggest that volumes have not returned to the cryptocurrency market. If the volumes of major cryptocurrencies can increase in the next few days, it is possible for the bitcoin price to cross $10,000 by the end of April, as many traders predict.

Overall, investors, retail traders, and hedge funds have become more optimistic in regards to the short and long-term trend of the cryptocurrency market. This week, cryptocurrency-focused hedge fund Pantera Capital said that it sees the market growing to a $40 trillion market in the long run, competing against traditional markets.

“Obviously, we’re very bullish on the space. We think we’re way below, maybe an order of magnitude — or two — below the real fundamental fair value of blockchain,” he said, stating later that “the industry as a whole is $400 billion. It easily could go to $4 trillion, and $40 trillion is definitely possible,” said Pantera Capital CEO Dan Morehead. 

Featured image from Shutterstock.