The crypto market was moving with diversity yesterday, where some cryptocurrencies have shown positive movement while some have declined by a considerable margin. If you are a trader or investor, you should focus on daily cryptocurrency headlines; it will give you a better idea.
Bitcoin and Ethereum rose with a slant margin, while altcoins like Cardano, Solana, and Ripple fell with some margin. The most trending crypto was Santos FC Fan Token.
The market cap of the crypto industry was up by 0.05% to $919.26 billion, while the trading volume was down by 11.45% to $48.6 billion.
The top-gaining crypto was Terra Classic, which went up by 33.12% to $0.05832. In contrast, the top loser was Apecoin, which fell by 7.68% to $4.65.
Key points:-
- The market cap of the crypto industry rose 0.05% reaching approx $919.26 billion, while its trading volume was down by 11.45% to $48.6 billion.
- Terra Classic was the top-gaining crypto within 24 hours, while the top loser was Apecoin.
- Bitcoin was trading around the $18,925 level.
Cryptocurrency Prices
The bitcoin price rose by just 0.06% and reached $19,076.23.We have seen some sharp movement of Bitcoin in the past 24 hours, which was highly volatile. It was moving to the red and green zone in different time fields. But, overall, it stayed at its position without showing various changes.
The price of Bitcoin remains almost the same, where its lowest trading volume was $18,925.60, and its trading volume was slightly down by 6.72% to $27,064,549,870.
Ethereum’s price rose by 0.43% to $1286.15.
Ethereum was also moving like Bitcoin, which remained volatile in a particular range. It was trading with some gains most of the time but then came to its actual range. As we have seen, Ethereum has not been moving very steeply for the past few days.
Here, the lowest trading price of Ethereum is $1272.74, where its trading volume goes down by 13.75% to $8,298,569,174.
Other Altcoins
The price of Ripple goes down by 1.63% to $0.4858, whereas the trading volume goes up by 17.91% to $2,091,555,758 as per Cryptocurrency Headlines.
Cardano’s price fell by 0.54% to $0.3926, and its trading volume also went down by 26.74% to $493,896,465.
Binance rose by 0.5% to $271.72, and its 24-hour reading volume went down by 16.38% to $582,639,522.
Solana goes down by 1.84% to $30.88.
Meme Coins
Dogecoin’s price goes up by 2.04% to $0.6002, and its 24-hour trading volume goes up by 21.97% to $241,766,151.
Shiba Inu’s price went up by 1.28% to $0.00001026.
Why are cryptos highly volatile?
Cryptocurrencies are one of the most volatile assets of the current decade. They are known for their uniqueness. Since their inception, cryptocurrencies have gone through rapid changes reaching their highest and lowest.
Crypto volatility is why many investors, even today, fear investing in cryptocurrencies. But what makes these price swings so evident? Why are cryptocurrencies highly volatile?
1. Price discovery stage:-
Cryptocurrencies at the current time can be considered the future of money. The primary reason for crypto volatility is its uniqueness. It’s been a decade since cryptocurrencies came into space. Still, many investors and speculators find cryptocurrency headlines a new speculative bubble.
Crypto has gained wider prominence over the last few years. But as an asset, they still need recognition like traditional currencies. In addition, due to a lack of regulation and solid law, many people find digital currencies highly volatile.
2. Supply and demand:-
To understand crypto volatility, you must also understand how supply and demand work. Cryptocurrencies are generated through the process of mining. When more and more people buy cryptocurrencies, their demand and value grow. The increased demand and limited supply in circulation bring volatility in the market, which affects investors.
3. Speculation and hype:-
Market speculation is a prominent factor contributing to the crypto price swing. Wherever a new asset is launched in the market, it experiences an initial hike as many people get excited hearing about it for the first time. Unfortunately, this also causes people to rush and buy about before its price increases and reaches a sustainable level.
Once people understand the coin is overvalued and lose money on it, speculation about it eventually dies, and the market collapses or sets to a normal level. Usually, it’s common for cryptocurrencies to experience such a high surge and then reach a minimal level. Influences and celebrities are responsible for such high fluctuations in the market.
4. Lack of regulations:-
Unlike traditional currencies, fiat, or bonds, Cryptocurrencies are not regulated by any government that comes under a regulatory framework. Additionally, they are not accepted in wider prominence, eg. China legally banned initial coin offerings and several cryptocurrencies in 2017.
5. Crypto whales:-
Crypto whales are prominent players in the crypto market. Crypto whales are individuals and entities holding many cryptocurrencies. They have a significant sum of the market, which is enough to make a bigger impact on the market. Therefore, their single action can significantly impact the crypto market.
Future of cryptocurrencies:-
2022 has caused many to question how the crypto market will perform in 2023. Some crypto experts believe the market will stabilize in a few months and perform well in the long run. Currently, the market is bearish, but it will continue to gain for some time. Others are not in favor of the cryptocurrency market.
Overall the crypto market has bigger potential, which can turn the fate of any investor. There are many questions about cryptocurrencies that can help to make better decisions as the cryptocurrency market evolves, so stay updated with its headlines. Hence investors should focus on the closest detail of the market, such as:-
- Regulations of the U.S market
- Crypto market adoption
- Exchanges traded funds and position
- Crypto regulations and laws
- Countries accepting cryptocurrencies
Conclusion:-
The crypto market is slowly recovering after a steep downfall. It’s nearly impossible to say what will happen in the coming few months. The crypto market is currently stable, and we can expect it to turn bullish soon. If you are an investor and betting on the future of crypto, we suggest you do market research and be updated with the market before making any investment decision.
FAQs:-
Why are cryptocurrencies highly volatile?
Cryptocurrencies are relatively new assets which makes them highly volatile.
Why has crypto dropped so much in 2022?
There are several reasons why cryptocurrencies will not perform well in 2022, such as FTX’s downfall, rising inflation, Fed rate hikes, and many more.
Will the crypto market recover?
The Crypto industry is expected to recover after a tumultuous downfall in 2022. Crypto will regroup to rise strongly in the market.
Will the bull market start in 2023?
As per experts, the crypto bull market can return in the second half of 2022 as the crypto market can bring new regulations from the start of the year.
Is crypto going to be around in 5 years?
No one can entirely predict the future of cryptocurrency in the coming years; reading its headlines can be the best option. The crypto market is highly volatile, and no market is the future of cryptocurrencies.
