Bitcoin Buy-Ins Create $15bn Boomerang For Crypto
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The green on the CoinMarketCap screen will be a welcome sign for the crypto community, latterly demoralized by double-digit dips.
The market is boomeranging today with all but four coins experiencing significant market gains from yesterday. In little more than 18 hours, crypto’s total value surged from $190bn, its lowest point since early November, to $205bn at the time of writing. The market peaked at $208bn this morning, at around 09:30 GMT.
Bitcoin Private (BTCP) is among the winners today, up 23% from yesterday. Other big increases include TenX (PAY), ZCoin (XZC), and Nano (NANO), which is up 19%: a $30m increase in its market cap.
Excluding Tether (USDT) all of the top-ten largest cryptocurrencies, by market cap, are up today. Litecoin (LTC) has made the biggest improvement, with a 7.6% increase in the past 24 hours; XRP is close-behind with a 7% increase.
Ether (ETH) is still currently below the $300 mark but is rising. The coin’s price likely dampened by significant sell-offs by ICO projects since mid-July; SANbase estimates 125,000 ETH have been sold in the past 30 days.
Bitcoin (BTC) has pulled itself back above the $6,000 mark. This will ease teh fears of many investors who were concerned prices could go even lower. BTC briefly crashed below $6,000 back in early February on the day of a Senate Banking Committee hearing on cryptocurrency; positive sentiment expressed by the SEC and CTFC chairmen saw bitcoin double in price in two weeks.
Bitcoin buy-ins remain the root-cause.
Senior market analyst at eToro, Mati Greenspan, thinks people started buying bitcoin when it fell below $6,000. He also suggests this market movement is nothing out of the ordinary, as BTC’s fluctuations fall well within expected price ranges, between $5,000 and $8,000.
“The range we’ve been watching on bitcoin has been holding rather well”, said Greenspan. “Since the beginning of the year, we’ve seen buyers stepping in about halfway through the $5K handle, which is approximately what analysts estimate is the cost to mine bitcoin.”
Bitcoin buy-ins are the cause behind today’s upswing. Notably, BTC dominance is still way above 50%, indicating investors are still staying with the safe bet, rather than moving into more risking digital assets.
Today’s price move reflects how closely correlated cryptocurrencies are: an increase in bitcoin demand creating a $15bn boomerang for the entire market.
The author is invested in BTC and ETH, which are mentioned in this article.