In the last two days, cryptocurrency traders have remained optimistic after the price recovery of major coins in cryptocurrency trading. Volumes are still low, but prices of popular digital currencies such as Bitcoin, Ripple, Ethereum and Bitcoin Cash has steadily risen.
Bitcoin Price Steadily Growing
Since the start of the year, the price of Bitcoin has been relatively low. On February 6th the price was below $6,500 and close to $6,000. However, today on 13th February, it surpassed the $9,000 mark, recording an optimistic performance. Experts are still optimistic that the price will surpass the $10,000 mark, often seen as the psychological threshold. However, for this to happen, the trading volume needs to stay up. In the last 12 hours, the volume for today has been low, and for the digital currency price to reach the $10,000 mark, the coin trading volume will have to increase.
Cryptocurrencies in the Traditional Financial Markets
Bitcoin and other cryptocurrencies are relatively new assets, but investors in the traditional financial market have been enthusiastic about crypto trading and the assets have even been introduced as part of the traditional finance markets in the form of futures. If this enthusiasm can be translated into investment, the prices will go up.
A cryptocurrency report titled “JPMorgan Perspectives: Decrypting Cryptocurrencies, Technology, Applications, and Challenges” published this week by JPMorgan which is the largest bank on the planet, with a market valuation of more than $380 billion, pointed out that cryptocurrencies will play a huge role in diversifying the world’s bond and equity portfolio. The paper further pointed out that the minimization of risks in the investment of cryptocurrency by diversifying assets was an important undertaking.
The introduction of cryptocurrencies in traditional financial markets, reports such as the JPMorgan’s reports and the rise of markets such as exchange traded funds (ETF) and Bitcoin futures are positive signs in crypto trading, as such undertakings increase investors’ confidence, which can in turn increase the price of cryptocurrencies in the near future.
Other Cryptocurrency Prices Follow Suit
It is a well-known fact that most cryptocurrencies often follow the price of the dominant coin in conditions of extreme volatility. Ethereum, Ripple, and Bitcoin Cash which are the second, third, and fourth largest coins have also seen a steady rise in their prices over the past week. Momentum is gaining for these other cryptocurrencies to secure their psychological thresholds. For instance, Ether, the Ethereum-network cryptocurrency ,is trying to hit the $1,000 mark. However, until volumes increase, this might not be attainable.
In addition to circulating supply and market capitalization, the volume is another important metric in cryptocurrency trading. The volume shows the amount of a digital coin that has been traded in the last 24 hours. It shows the number of people buying or selling a coin. For instance, if the price of Bitcoin goes up like it has done in the past week, and there is hefty volume, this means that a lot of people are trading in Bitcoin. This will cause the price to rise even further. However, if the price decreases and there is minimal volume, this means that only a few people agree with the trend.
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So, do you think the recent rise in major cryptocurrency prices is a signs that they will reach their psychological thresholds? Let us know your take on this issue in the comments box below.