The crypto market has been running with mixed sentiments for the past few days and has experienced constant volatility within 24 hours. Investors who are looking to make an entry into the market should have to focus on cryptocurrency world news and can make their decision accordingly.
It is the same for cryptocurrencies and all other altcoins, so traders should wait for the right time to make an entry. The crypto market fell by 0.39%, reaching $915.25 billion, and its trading volume went down by 6.85% to $45.36 billion.
The top trending crypto coin in the past 24 hours is Manchester City Fan Token, and the top fainting crypto coin is the Huobi token, which goes up by 20.53% to $7.50.
Key points:-
- The top trending crypto coin in the past 24 hours is Manchester City Fan Token, and the top fainting crypto coin is the Huobi token.
- One of the top cryptocurrencies, Bitcoin, was trading with the lowest price of $19,029.45.
- Ethereum Was trading below $1300 in the past 24 hours.
Cryptocurrency Prices
Bitcoin went up by 0.06% to $19,086.52.The price of Bitcoin remained the same as usual and was moving to a specific range in the past 24 hours. After that, there were some swings in the price of Bitcoin but to a narrow range and showed a stagnant market.
The lowest intraday price of Bitcoin was $19,029.45, where its 24-hour trading volume went down by 7.93% to $24,993,881,524.
The price of Ethereum rose by 0.17% to $1286.68.
Ethereum was trading with some gains during the day, but in the end, the price of Ethereum came below $1300.
The lowest intraday price of Ethereum goes to $1283.18, where its trading volume goes up by 1.88% to $8,456,593,025.
Other Altcoins
Ripple price goes down by 3.2% to $0.4699, whereas its trading volume drops by 28.58% to $1,487,408,728.
Cardano also fell by 4.45% to $0.3749, whereas its 24-hour trading volume was up by 4.47% to $515,960,265.
Binance prices declined by 0.76% to $269.16, and its trading volume dropped by 5.2% to $552,316,364.
Solana’s price went up by 0.31% to $30.77.
Meme Coins
Dogecoin’s price goes by 1.99% to $0.05874, and its trading volume drops by 13.74% to $208,076,384.
Shiba Inu’s price went down by 2.30% to $0.00001002.
Why is the crypto market so speculative?
Most cryptocurrencies have been in the market for decades but are also influenced by volatility. There is high volatility in the market compared to crypto assets. This question has no definitive answer, as cryptocurrencies are highly volatile. Stock is one of the oldest assets in the traditional market used to generate profits. In contrast, cryptocurrencies are relatively new class assets.
Generally, cryptocurrencies are considered the most volatile asset compared to any other asset in the market.
1. Mature asset class
Cryptocurrencies have been there just for a decade as a mature asset class. They are getting mass adoption and recognition. There is no doubt that these assets are highly volatile.
2. Lack of clarity and regulations
One of the most significant reasons for crypto volatility is the lack of regulations and clear guidelines. Regulations in the crypto industry are in the developing phase. Different nations have different laws for cryptocurrencies. Some even have banned cryptocurrency trading. Nations are experimenting with different technologies to chart progressive growth while maintaining the interest rate of retail folks.
Some malicious intent people also take advantage of this to inflate or deflate the price of the cryptocurrency, causing price swings and volatility in the market. Clarity of regulation can stop the frauds such as ponzi scams, hacking, or illegal activities in the market.
3. Limited market size
Crypto market size is another bigger factor contributing to the crypto market volatility. Compared to either asset class, the crypto market has a relatively smaller size. These relatively small charges of the market can even cause the biggest change in the market, pushing the market to be highly volatile.
For e.g., If a prominent investor or a large group of investors decides to invest in the market. In that case, the price of cryptocurrencies will automatically rise as the demand grows. On the other hand, if a potential investor sells their funds. In that case, the price of the crypto market will fall as the supply increases.
4. Decentralization:-
Decentralization is another biggest reason that contributes to crypto volatility. Unlike other traditional markets, the crypto market is free from regulations and any type of government control. This decentralized nature of cryptocurrency can sometimes cause conflict in the market, leading to price swings in the market.
Conclusion
Crypto volatility is the biggest reason why so many investors fear investing in these assets. Unfortunately, there is no market that is free from risks. Investors should do their own research about the future value of an asset before making any investment decision.
FAQs:-
What Are the Most Popular Cryptocurrencies?
Bitcoin, Ethereum, Solana, and Ripple are the most popular cryptocurrencies.
Why are cryptocurrencies highly volatile?
Several factors influence crypto volatility, such as supply chain, lack of regulations, market size, etc.
Should I invest in cryptocurrency?
Investing in any asset is your personal decision; however, you can do market research before making any kind of investment decision.
How will the crypto market perform in 2023?
According to experts, the crypto market will recover in 2023.
