The crypto industry was highly volatile in the last 24 hours and has shown a positive movement. Today’s breaking crypto news was Elon Musk’s statement that has expected Bitcoin to reach the mark of $20,000 very soon, and the price will likely get $21,500 by the end of this quarter.
Just after the statement, the price of Bitcoin starts rising. Elon Musk also claims that the up trend of Bitcoin arises because of Dogecoin. Almost every cryptocurrency and Bitcoin showed positive movement yesterday, allowing new traders to enter this market.
The market cap of the crypto industry rose by 3% to $942.89 billion, and its trading volume also went up by 62.88% and reached $86.73 billion. The figure clearly states that traders actively participated in this bullish market and are expecting the market’s rise in the future.
The most trending crypto was the Manchester City Fan token. The top-performing crypto was Ethereum Name Service, which went up by 17.41% to $19.91; the top loser was Convex Finance, which went down by 4.84% to $5.50.
Key points:-
- Like other assets, Bitcoin price also depends on several factors, such as supply and demand.
- Bitcoin is still a nascent asset for those who don’t know the potential of the crypto market.
- The most trending crypto within 24 hours was the Manchester City Fan token.
Cryptocurrency Prices
The price of Bitcoin rose by 3.66% to $19,798.63
The Bitcoin graph saw wide swings yesterday and claims a green zone until night. After that, it was trading with severe losses till evening and took a deeper plunge moving into the red area. But sometime after evening, the price of Bitcoin started moving upward, and by 10 pm, it came to the green zone. Later, it started creating new prices every hour and making records.
The lowest trading price of Bitcoin was $18,319.81, where its trading volume went up by 92.43% to $48,117,083,615.
The price of Ethereum also rose by 3.48% to $1331.70.
Ethereum was trading with losses just like BTC, and the behavior was also the same. But it took more time to get entirely from the red zone to gain. It took more than 6 hours to recover from the loss.
The lowest intraday price of Ethereum was $1209.27, and its trading volume went up by 125.18% to $19,048,753,195.
Other Altcoins
The price of Ripple goes up by 6.95% to $0.5049, and its 24-hour trading volume goes up by 96.27% to $2,916,936,118.
Cardano’s price also rose by 3.65% to $0.3875; its trading volume went up by 109.31% to $1,081,504,904.
Solana’s price went up by 2.63% to $31.67.
Binance’s price rose by 2.13% to $275.51, and its 24-hour trading volume went up by 113.64% to $1,177,106,950.
Meme Coins
The price of Dogecoin rose by 3.12% to $0.0607, and the trading volume went up 126.81% to $474,966,886.
Shiba Inu’s price went up by 6.56% to $0.00001066.
Why is Bitcoin so volatile?
Bitcoin has received much attention since its launch by an unknown person Satoshi Nakamoto. It was publicly available to trade in 2009. But its popularity began to rise after 2009 when its price suddenly increased to $0.09. Since then, its price has risen regularly, giving investors new hope to enter this market. As of now, Bitcoin is the biggest cryptocurrency by market capitalization.
Generally, all cryptocurrencies are volatile by nature and subjected to sudden market swings. Hence the analysis of the market is crucial for any decision. A study shows a number of financial and economic measures that influence crypto volatility.
Bitcoin price fluctuates because it’s associated with sudden price movements. The sudden price movement, government regulations, and several other micro and macroeconomic events influence it.
Volatility is sudden variance in an asset price. Assets that fluctuate easily are considered volatile assets.
Bitcoin has grown 50X in recent years. It is considered more volatile than any other asset. There are many factors that are associated with the dynamics of the market. Investors regularly change their minds based on current events and other factors. If Bitcoin is not able to keep up with these demands, its price changes spontaneously.
Conclusion:-
We all know the crypto industry is highly influenced by volatility. Hence it is suggested to mix your portfolio with a range of asset classes. In this way, you can avoid the loss of money at once. The market is in a recovery phase, and we expect it to turn bullish soon. If you are an investor, we suggest you do your own research and understand informant factors before making any investment decision.
FAQs:-
Which cryptocurrency is the most volatile?
Bitcoin is considered one of the most volatile cryptocurrencies.
What causes sudden price swings in Bitcoin?
Several factors contribute to the sudden price swings in Bitcoin, for e.g., demand and supply, news events, regulatory changes, and market sentiments.
How can I manage the risk of Bitcoin volatility?
One of the common ways to manage market volatility is the diversification of assets. Investors can easily diversify their investments by mixing different assets in their portfolio, such as bonds and commodities.
Can Bitcoin’s volatility be predicted?
In particular, there is no way to predict an asset’s market volatility. However, some indicators could be used to guess future price movement in a coin.
What role do whales play in Bitcoin volatility?
Whales are usually the significant player in the market who hold a large portion of an asset and contribute to the market volatility. When whales sell or buy a large amount of an asset, it can significantly impact the market prices.
