Cryptocurrencies generally gained on Friday, following a sharp decline the day before. After Russian military forces launched an attack on Ukraine, the crypto exchange market collapsed by around $150 billion.
According to Coinmetrics, bitcoin rose by 1.7 percent to sell for $39,065. The digital currency had several Price actions in the early hours of the day, when it jumped as much as 11% over the previous 24 hours, after falling to the $34,348 level previously.
Ether began an ascent by 2.1 MarketCap. Ethereum, Bitcoin Cash, Litecoin and EOS also managed to make slight advances.
The total market capitalization for all cryptocurrencies now stands at $269 billion, according to CoinMarketCap. Bitcoin’s share of this is at 47.0%.
As a matter of fact, Thursday’s cryptocurrency sell-off was the largest in history.
Reason For Thursday’s Sell Off
Global equities plummeted on Thursday, with bitcoin among the losers. Russia’s invasion of Ukraine hurt bitcoin as well.
Bitcoin has been associated with a variety of risk assets for several months before Thursday.
Therefore more institutional investors entered the market and short-term traders – who trade Bitcoin and other assets using trading bots like algorithms plus500 and eToro – have gotten involved-began to cash in their profits
In an interview with CNBC, Noelle Acheson, head of market insights at Genesis, said that the steep decline should serve as a reminder to everyone that all correlations will bounce back to “one” in times of crisis.
Bitcoin prices plummeted on Thursday, along with most digital currencies, as global equity markets suffered their worst day in months.
Similarly, it appears that the long-term investors in Bitcoin have been waiting for a dip to buy in.
This leaves risk dealers on the sidelines, with no bearing on the price’s fall. Price action has increased for Bitcoin and Ether amid a global market recovery.
It’s interesting to see how Bitcoin and Ether prices have advanced higher amid the rebound of other digital currencies.
As we’ve seen in the past, Bitcoin and Ether are not immune to large price swings. However, with continued interest from institutional investors – as well as new entrants like Goldman Sachs and eToro – it seems that the overall trend for these cryptocurrencies is still positive.
Long-term investors should continue to watch these markets closely for opportunities to buy on dips.
Will The Russia-Ukraine Situation Create A Big Short Squeeze?
The world of cryptocurrency is tasting “demand unwinding” and short ending positions, according to Vijay Ayyar, the vice chairman of corporate and international development at crypto exchange Luno.
Bitcoin and Ether prices have surged amid a broad market recovery. Bitcoin is up more than 15% in the last 24 hours, while Ether has gained more than 25%.
While these cryptocurrencies are not immune to large price swings, it seems that the overall trend for Bitcoin and Ether is still positive.
It’s hoped that this boost should continue for some time, except otherwise dictated by the turn of events in Ukraine more so when the issue of regulation is being appreciatively considered in that Country.
It is still early days for Bitcoin and Ether, and it is possible that we will see more price volatility in the coming weeks and months.
However, these cryptocurrencies offer a unique investment opportunity for those who are interested.