The market on Tuesday is booming again, which has helped boost the value of cryptocurrencies. Bitcoin (BTC 1.68%). As of 2:00 pm ET, it has risen 3.5% in the last 24 hours, but has still fallen 4.7% in the past week.Its little rival Ethereum (ETH 1.81%). It’s up 3.2% today, but it’s down 13.1% last week.
Silver Gate Capital (SI 12.36%).A digital financial company, as I write, is up 10.9%, but today’s transactions are also up 13.2% in value. Why is the digital currency market soaring today?
Last week was one of the worst I’ve seen in the crypto industry. TerraUSD Lost pegs to $ 1 and finally with stablecoin Terra (LUNA).. This led to a surge in sales and multiple stablecoins temporarily lost their pegs.
Some stability returned to the market over the weekend, which gave investors some confidence. The value of cryptocurrencies such as Bitcoin and Ethereum is rising again, and so is Altcoin.
It should be remembered that as soon as the crypto market fell last week, it is much more mature than it was just a few years ago. Thousands of developers have entered the industry based on cryptocurrencies such as Bitcoin and Ethereum. These businesses are much more rooted than the 2017 cryptocurrency winter. In the long run, I think the future will look brighter than it was a few years ago.
Volatility continues to be the standard for cryptocurrencies and is reminiscent of it today. But I think it’s important to remember what’s happening here with payment systems and digital projects currently built on top of blockchain. As it continues, it should help Bitcoin and Ethereum in the long run.
I’m still bullish on the crypto market, but there’s volatility in the meantime. Over the past year, trading cryptocurrencies has earned and lost a lot of money, and we are entering a new phase where utilities, not trading, are likely to create maximum value. That can lead some investors to abandon the market as other investors move in, but it’s not bad as the industry matures.
Such a down market can also be a buying opportunity for investors who are willing to hold it for the long term. Good companies and projects are built in the downmarket, so as long as investors are willing to buy and hold high quality digital, cryptocurrencies and projects built on the currently prosperous blockchain are 10 Assets that will be the project we talk about years later.