What a difference a week makes. Last Monday, the crypto markets took a severe downturn, shedding more than $25 billion from mid-June highs. At its worst, the total cryptocurrency market cap fell as low as $88 billion. The markets began to recover later in the week but fell prey to a weekend slump.
They shook off that slump on Monday, as virtually every cryptocurrency experienced positive price movement. At present, the total cryptocurrency market cap is $101.5 billion.
The bitcoin price led the recovery, rising 5.6% to $2,573. Bitcoin has now regained more than $200 since falling as low as $2,333 on June 27. Bitcoin’s market cap is now about $42.3 billion.
It will be interesting to see whether the bitcoin recovery continues given the upcoming network fork and the contentious scaling debate. Some analysts predict the fork will cause the bitcoin price to decline steeply, as investors cash out gains to avoid potential pitfalls if the fork does not go smoothly. However, the long-term outlook for the bitcoin price remains positive. Goldman Sachs, for instance, released a report predicting that the bitcoin price will decline to around $1,850 before taking a bullish turn and rising to a record-high of nearly $4,000.
Ethereum also benefited from the Monday recovery. The ethereum price rose more than 6% to $287. However, the ethereum price experienced a minor drop against bitcoin. Ethereum now has a $26.7 billion market cap, placing it roughly $15.6 billion behind bitcoin.
Almost every altcoin in the top 100 experienced positive price movement, but Litecoin and BitShares led the way. The litecoin price rose an impressive 22% to about $48. Litecoin is now within striking distance of its all-time high of $52.
BitShares also made excellent gains on Monday. The 10th-ranked cryptocurrency reversed its weeklong decline by rising 18% to about $0.24.
As impressive as the litecoin price rally is, it will likely be overshadowed by the EOS initial coin offering. EOS set an ICO record by raising approximately $185 million for development startup Block.One. This dwarfed Bancor’s previous record by $35 million. The successful ICO immediately made the EOS token a top-10 cryptocurrency with a market cap of nearly $700 million.
The EOS price has been volatile during its first days on exchanges, and the token has repeatedly swung in and out of the top 10. Nevertheless, the overall price movement has been positive. At the time of writing, the EOS price was $3.91, placing it 11th in the market cap rankings.
Last week’s market downturn enabled bitcoin to put some distance between its market cap and ethereum’s, putting off talk that the Flippening was imminent. Ethereum gradually closed the gap as June came to a close, but the needle has been moving in bitcoin’s favor during the first three days of July.
On Monday, bitcoin market cap dominance rose to 41.7%. Ethereum, which at one point during mid-June commanded more than 33.5% of all cryptocurrency investments, now maintains a 26.3% share. Litecoin’s banner day raised its market cap share to 2.44%, while Ripple’s declined slightly to 9.84%.
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Last modified: May 21, 2020 9:43 AM UTC