The cryptocurrency market has added more than $40 billion within a 48 hour period as major digital assets bitcoin, ether, Ripple, and Bitcoin Cash recorded gains in the range of 5 to 10 percent.
Ripple (XRP), Bitcoin Cash (BCH), EOS, and Cardano (ADA) have been the best performing major digital assets on July 3. Cardano recorded a daily increase of 16 percent while EOS saw a 13 percent rise in value. All of these major digital assets have performed particularly poorly against the US dollar and bitcoin over the past few weeks.
On yesterday’s report, CCN.com emphasized that the corrective rally recorded on July 2 established the trend for the first week of July. The unforeseen rise in the volume of bitcoin and ether led the entire cryptocurrency market to bounce, bringing along both major cryptocurrencies and minor digital assets.
As of July 3, the volume of bitcoin remains above $4.6 billion and the volume of Ether has stabilized at the $1.7 billion mark. The volume of Bitcoin Cash and Ripple have nearly doubled since last week as well.
Previously, even in strong corrective rallies, analysts stated that due to the low volume, regardless of the optimistic momentum indicators, oscillators, and moving averages, the cryptocurrency market cannot find a firm base to surge up in value. This week, the cryptocurrency market saw a solid increase in volume and two stable days in terms of value and volume, leading investors to become more optimistic regarding the short-term trend of digital assets.
The volume of Tether (USDT) has also dropped substantially from its yearly high at $4.5 billion recorded on July 1, signifying that more investors are trading crypto-to-crypto instead of crypto-to-stablecoins, which was the case throughout the past month amidst a strong downtrend.
Small cryptocurrencies and tokens will likely be the main beneficiary of the recent surge in volume and price in the upcoming days. Already, tokens including Aelf (ELF), Gifto (GTO), Aeternity (AE), Bluzelle (BLZ), and Ethos (BQX) have recorded 10 percent gains against bitcoin, which recorded a solid 5 percent gain of its own.
The daily trading volume of most cryptocurrencies have rebounded. While the volumes of small cryptocurrencies and tokens still remain substantially low, a change in trend in the next few days will result in the rise in volume for small digital assets.
Amid a recovery period, Coinbase, the world’s biggest cryptocurrency exchange and brokerage officially launched its first crypto custodianship, providing institutional investors and large-scale investment firms a platform and channel to invest in digital assets like bitcoin with robust infrastructure and storage.
As investment firms and retail traders develop optimism towards the short-term future of the cryptocurrency market, major digital assets will continue to rise in value. Still, in the mid-term, another minor correction should not be disregarded as there exists a possibility the crypto market moves to the upside too quickly based on the current trend.
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Last modified: May 20, 2020 6:56 PM UTC