Bitcoin Buy-Ins Create $15bn Boomerang For Crypto
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.
“It is too soon to confirm resolution in one way or the other,” said Chris Bendiksen, Head of Research at CoinShares. “We are seeing some positive technicals and have recently been posting some of that analysis on our social media feeds, but this is only indicative and not conclusive.”
Today’s price move reflects how closely correlated cryptocurrencies are: an increase in bitcoin demand creating a $15bn boomerang for the entire market.
Original story: https://cryptobriefing.com/bitcoin-buy-ins-surge-crypto/
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